UPDATE: Deutsche Bank Upgrades Foot Locker to Buy on Catalysts, Mitigated Concerns

Deutsche Bank raises its rating on Foot Locker

from Hold to Buy and increases its price target from $32 to $38. Deutsche Bank says, "All cylinders are firing for FL with a much better-than-expected start to FY12 on the top-line (+9.7% SSS) and margins (up 247 bps). Strength in the athletic footwear cycle combined with management's track record gives us confidence that these impressive gains can continue, especially given unique product launches expected to coincide with the Euro Championships and Olympics. Our previous concerns regarding trends in Europe, LFL, and CCS banners were mitigated by each now running positive SSS. At 11.8x FY13E EPS along with a 2.2% dividend yield, shares of FL look attractive. We are raising our PT to $38, however, we see even greater opportunities LT." FL closed at $32.42 on Friday.