Sterne Agee Raises Estimates On Foot Locker
November 23, 2011 2:33 PM
In a note out today, Sterne Agee raised its 2012 EPS and revenue estimates on athletic apparel and shoe retailer Foot Lock (NYSE: FL) to $2.25 a share on revenue of $5.94 billion from $2.16 a share and sales of $5.83 billion. The adjustment reflects a 53rd week in 2012.
Sterne Agee has a buy rating and $30 price target on Foot Locker.
“Our price target of $30 implies a P/E of 16.8x/13.9x, (15x/12.2x ex-cash), our '11/'12 EPS estimates. On an enterprise basis, our price target assumes an EBITDA multiple of 7.3/6.3x our 2011/2012 estimates. Risks to our thesis include a further deterioration of the current macro environment, a reversal of the recent improvement in working capital management or an acquisition at a value destroying multiple,” Sterne Agee said in a note.
