+ 1.47
+ 0.4%
+ 0.49
+ 0.11%
+ 0.27
+ 0.16%

Foot Locker Is Well Positioned For The Holidays, Analyst Says In Upgrade

October 13, 2020 10:46 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Foot Locker Is Well Positioned For The Holidays, Analyst Says In Upgrade

Foot Locker, Inc. (NYSE:FL) is well positioned as a strategic Nike Inc (NYSE:NKE) wholesaler and should see market share gains ahead of the holidays, according to BofA Securities.

The Foot Locker Analyst: Robert Ohmes upgraded Foot Locker's stock from Underperform to Buy with a price target lifted from $20 to $50.

The Foot Locker Thesis: Nike is committed to working with Foot Locker to build-long term momentum through favorable product allocations, Ohmes wrote in the note. Signs of momentum should be apparent in the coming months from strength in products like Air Force 1, Air Jordan 1, Blazer and Retro Jordan.

Meanwhile, BofA's proprietary credit and debit card spending data at nearly 130 mall-based retailers point to improving sentiment in recent weeks. Specifically, daily mall spend turned positive year-over-year in September and points to a recovery in mall traffic trends.

Related Link: Why Barclays Is Turning Bullish On 4 Retailers

Foot Locker web traffic and Google Trends accelerated in September due to a delayed back-to-school shopping season and this year's Labor Day calendar shift, according to Ohmes.

Finally, Foot Locker's stock is trading at a "compelling" valuation of around eight times the fiscal 2022 estimated EPS. Also, Foot Locker offers investors "a discounted way" to take advantage of Nike's momentum.

FL Price Action: Shares of Foot Locker were trading higher by 2% Tuesday morning at $38.29.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.

Related Articles

Hibbett Analyst: Athletic Goods Retailer Has Different Approach, High Growth Potential

Hibbett, Inc.'s (NASDAQ: HIBB) differentiated approach to athletic retail and growth potential are turning Telsey Advisory Group bullish on the retail stock.  read more

Cowen's Foot Locker Bull Case: 'Significant Potential'

Foot Locker, Inc’s (NYSE: FL) stock valuation seems attractive given the durability of the company’s competitive position and its stake in GOAT Group, known for its online sneaker offerings, according to Cowen Consumer Tracker Survey. read more

Piper Sandler Highlights Continued Foot Locker Store Closures In Downgrade

Footwear and apparel retailer Foot Locker, Inc. (NYSE: FL) is entering the final weeks of 2020 with many of its stores closed, and its long-term post-pandemic outlook has its own separate headwinds, according to Piper Sandler. read more

Why Barclays Is Turning Bullish On 4 Retailers

For the first time in more than 10 years, Barclays analysts turned positive on the retail industry and said a bullish stance on four retailers is now warranted. The Retail Analyst: Adrienne Yih upgraded the following retailers: read more