UPDATE: Goldman Sachs Reiterates Buy Rating, Raises PT on Foot Locker to Reflect Innovation Cycle

In a report published Friday, Goldman Sachs analyst Taposh Bari reiterated a Buy rating on Foot Locker FL, and raised the price target from $40.00 to $41.00. In the report, Goldman Sachs noted, “We are raising price targets on FL and FINL, justifying a slightly higher multiple ahead of a host of new product launches for back-to-school. Our new price targets offer 16% upside for FL and 2% upside for FINL. Our annual EPS estimates remain unchanged. We expect investors to re-rate FL and FINL closer to their historic averages as a rich athletic footwear product pipeline re-engages consumers for backto-school and Holiday. Specific examples of innovation include 1) the continued commercialization of Nike Flyknit, with a reacceleration of North American reported futures sales as evidence, 2) new platforms Boost and Spring Blade by Adidas and 3) the anniversary of 30% declines at Reebok (1 year) and Puma (2 years).” Foot Locker closed on Wednesday at $35.44.