UPDATE - UBS Upgrades Foot Locker (FL) to Buy; NBA Overhang Lifted

UPDATE - UBS upgrades Foot Locker (NYSE: FL) from Neutral to Buy. PT raised from $24 to $30.

UBS analyst said, "We've commented that we would get more constructive on FL’s ongoing turnaround once SSS risks were better understood—reflecting our concerns about decelerating basketball trends amid an NBA lockout (we est that ~35% of FL’s revenues are from basketball categories). In our view, the ending NBA lockout significantly boosts NT SSS visibility and removes our biggest concern for the stock...With NBA risk removed, we believe premium SSS growth & current low valuation relative to specialty peers will be catalysts for the stock. We are raising our FY12E SSS to 4% from 3%, and EPS to $2.04 (+14% YOY, Street: $2.01) from $1.92."

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