Credit Suisse Bullish On Foot Locker After Investor Day
Foot Locker, Inc. (NYSE: FL) is receiving some positive analyst coverage after hosting an analyst day Thursday.
The Analyst
Credit Suisse analyst Michael Binetti maintained an Outperform rating on Foot Locker and raised the price target from $75 to $77.
The Thesis:
Binetti said he's impressed with Foot Locker’s top-line strategy and myriad of new initiatives, including the FLX loyalty program set to launch in late 2019; store growth; and investments in new digitally savvy concepts.
Foot Locker’s new stores will be more efficient, so selling square footage should grow by low single digits, the analyst said in a Friday note.
“With [average unit retail] up [by double digits] in the fourth quarter — and comments that full-price selling is near peak — the key top-line variable will be driving unit growth once AURs inevitably slow. In the near-term, we’re encouraged FL reiterated [mid-single digit same-store sales] growth in the first quarter."
The biggest swing factor in Foot Locker’s entire plan will be creating buy-in that the company can pivot from AUR-driven same store sales growth today to more unit-driven growth, Binetti said.
The analyst said he likes the company’s combination of quality earnings growth and attractive valuation.
Price Action:
Foot Locker shares were down 0.13 percent at $60.30 at the time of publication Friday.
Related Links:
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Retail Analyst: Foot Locker, Skechers And Steve Madden Poised To Run Higher
Photo by Dwight Burdette/Wikimedia.
Latest Ratings for FL
Mar 2019 | Credit Suisse | Maintains | Outperform | Outperform |
Mar 2019 | Citigroup | Maintains | Buy | Buy |
Mar 2019 | Baird | Maintains | Outperform | Outperform |
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