FBR Capital Markets Maintains Footlocker (FL) Market Perform Rating
March 05, 2010 10:35 AM
FBR Capital Markets analysts Eric Tracy and Kelly Duval maintained their Market Perform rating and $14 price target for shares of Footlocker Inc. (NYSE: FL).
The FBR Capital Markets analysts expressed concern about Footlocker's long term ability to compete against many retailers in the same market space, some of which are very well funded.
They said that next week's investor day should provide more insight into the long term strategic direction of Footlocker Inc.
They wrote that, "although FL fell short of our 4Q expectation, management's positive commentary highlighting sales momentum as the quarter progressed, which persisted in February against more difficult comparisons, keeps our FY10 thesis intact. Management’s commentary (FY10 comp guidance up low single digits) validates our belief that comps would turn positive in FY10, against easy comparisons and given potential product catalysts, which include the toning category (strength emerged in February, moving the women's category into positive territory) and new launches (including new technologies) from major brands such as Nike (Fresh Air campaign)."
