On Dec 06, major Wall Street analysts update their ratings for $Foot Locker (FL.US)$, with price targets ranging from $16 to $30.
Morgan Stanley analyst Alexandra Straton maintains with a sell rating, and adjusts the target price from $17 to $16.
Goldman Sachs analyst Kate McShane maintains with a sell rating, and adjusts the target price from $24 to $22.
BofA Securities analyst Lorraine Hutchinson maintains with a hold rating, and adjusts the target price from $30 to $25.
Barclays analyst Adrienne Yih maintains with a buy rating, and adjusts the target price from $34 to $29.
Evercore analyst Michael Binetti maintains with a buy rating, and adjusts the target price from $32 to $30.
Furthermore, according to the comprehensive report, the opinions of $Foot Locker (FL.US)$'s main analysts recently are as follows:
Foot Locker's Q3 results fell short of expectations, as trends weakened over the quarter and promotional activities increased. The company revised its fiscal 2024 forecasts downwards for sales and earnings, anticipating continued promotions but with a strategic shift towards footwear in the fourth quarter.
Foot Locker's recent Q3 miss and subsequent reduction in FY guidance underscore ongoing concerns about the company's potential for recovery. This situation provides more evidence for bearish perspectives. Furthermore, perceived risks to full-year and mid-term street EPS projections persist, according to analysts.
The analyst indicated a reevaluation of expectations through a reduced fiscal year earnings forecast due to persisting margin pressures expected in the fourth quarter. This assessment considers that the current valuation of the stock mitigates the associated risks linked to sales revitalization and margin recuperation.
Despite a 30% decrease in stock value over the past three months, the current valuation of Foot Locker is still not considered attractive due to significant downside risks. Challenges include struggles faced by its primary brand partner and increasing competition from direct-to-consumer channels of other brands, as well as competitors like JD Sports.
Foot Locker's Q3 performance fell short of expectations, and the company has reduced its future guidance. Additionally, the revised fiscal 2024 gross margin guidance suggests a recovery of only 30% of the 300 basis point merchandise margin headwind experienced in fiscal 2023's gross margin, as opposed to the previously anticipated 60%.
Here are the latest investment ratings and price targets for $Foot Locker (FL.US)$ from 8 analysts:
Note:
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