Skip to main content

Market Overview

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

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.

The Foot Locker Analyst: John Kernan upgraded Foot Locker from Market Perform to Outperform and raised the price target from $38 to $55.

The Foot Locker Thesis: Foot Locker is the most preferred retailer to purchase sneakers for the 18-34 age group, according to the Cowen Consumer Tracker Survey, Kernan said in a Thursday upgrade note.

Foot Locker’s $100-million investment in GOAT Group is estimated to give the company a stake of between 10% to 18%, the analyst said.

“GOAT's recent Series E financing valued the company at $1.75B. Assuming GOAT does not increase further in value, FL's EV, which has only $129MM of debt outstanding, is roughly $2.5B. We note StockX was recently valued at $2.8B following a Series E financing of $275MM,” he said. 

Foot Locker has “significant potential in sneaker and streetwear resale,” Kernan said, adding that the company’s earnings could grow to around $7 per share by fiscal 2024, with the dividend being raised to $2.21.

FL Price Action: Shares of Foot Locker were trading at near-flat at $43.57 Thursday.

Latest Ratings for FL

Mar 2021Morgan StanleyMaintainsEqual-Weight
Feb 2021Evercore ISI GroupUpgradesIn-LineOutperform
Feb 2021Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for FL
View the Latest Analyst Ratings


Related Articles (FL)

View Comments and Join the Discussion!

Posted-In: Apparel Cowen John Kernan retailAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

KRYSHC Wainwright & Co.Maintains103.0
OTRKRBC CapitalDowngrades32.0
EVHCanaccord GenuityMaintains24.0
BMRNCanaccord GenuityMaintains91.0
ONTFCanaccord GenuityInitiates Coverage On65.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at