UPDATE: Credit Suisse Initiates Foot Locker at Outperform on Store Traffic
Credit Suisse initiated its coverage on Foot Locker (NYSE: FL) with a rating of Outperform and a $43 price target.
Credit Suisse said, "Key Investment Points: (1) Strong footwear cycle is sustainable near-term and FL is best positioned to benefit; (2) store checks show progress in Lady Foot Locker and other banners; (3) international is faring better than feared and provides a significant growth opportunity over the long term; (4) potential upside to margins from better apparel, systems improvements, and labor efficiencies; and (5) building cash could lead to an increase in dividend payments or greater share buybacks. These factors point to low teens/mid-teens EPS growth versus the Street's 11% longer term estimate. "
Foot Locker closed at $36.33 on Thursday.
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