Piper Jaffray downgraded Foot Locker (NYSE: FL) from Overweight to Neutral with a price target of $57.00 (from $54.00), citing valuation, peak margins and 2-year comp deceleration. Despite a stronger than expected quarter, the firm now sees risk/reward as balanced.

Sean Naughton said, "The core reasons for our rating change arearound valuation, peak EBITDA margins, and decelerating two and three year comp trends. While we are strong believers in the athletic trend for both footwear and apparel, it seems appropriate to take a breather on Foot Locker shares as we believe they will likely be more of an inline performer than a relative outperformer as comparisons get increasingly difficult over the next three quarters."

The firm raised FY 2014 EPS from $3.29 to $3.42 and FY 2015 EPS from $3.59 to $3.81.

For an analyst ratings summary and ratings history on Foot Locker click here. For more ratings news on Foot Locker click here.

Shares of Foot Locker closed at $54.12 yesterday.