UPDATE: Piper Jaffray Initiates Foot Locker with Overweight on Strong Cash Flow Dynamics, Attractive Valuation

In a report published Friday, Piper Jaffray analyst Sean P. Naughton initiated coverage on Foot Locker

with an Overweight rating and $39.00 price target. In the report, Naughton noted, “We are initiating coverage of Foot Locker with an Overweight rating and $39 price target given its strong brand positioning with core consumers as a preferred destination to purchase athletic footwear as evidenced by our survey work with teens and adults. Our thesis is also predicated on a very strong balance sheet, valuation at a discount to its historical multiple, and demonstrated excellence in setting realistic long term goals and achieving them. We believe the strong connection with the core customer, real estate optimization, and balanced approach to capital deployment will continue to deliver solid shareholder returns.” Foot Locker closed on Thursday at $33.76.