UPDATE: Benchmark Initiates Hold, $35 PT on Foot Locker

Benchmark initiates its coverage of Foot Locker

with a Hold rating and a $35 price target, as it believes shares are fairly valued while the company transitions from turnaround to growth. Benchmark comments, "We think the stock is fairly valued and our 2012 and 2013 estimates are pretty much in-line with current consensus. In the near-term, FL should continue to benefit from tailwinds given the product cycle, which translates into mid-to-high single digit sales growth and double-digit EPS growth. However, looking further out, the company is no longer as much of a turnaround story and will need to prove that it can find incremental growth and margin enhancement opportunities as we move further along in the current product cycle." FL closed at $30.99 on Wednesday.