Analyst Paul Lejuez of Citi maintained a Hold rating on Foot Locker (FL – Research Report), boosting the price target to $24.00.
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Paul Lejuez has given his Hold rating due to a combination of factors impacting Foot Locker’s financial outlook. The company recently announced a negative first-quarter pre-announcement, with projected comparable sales declining by 2.6% and an adjusted loss per share greater than consensus expectations. This has led to a downward revision in earnings estimates for the fiscal years 2025 and 2026, reflecting weaker sales and gross margins, influenced by a challenging macroeconomic environment and increased tariffs.
Despite these challenges, the target price for Foot Locker’s stock has been raised from $20 to $24, aligning with the proposed acquisition price by DKS. However, the expected share price return remains minimal at 0.4%, suggesting limited upside potential. Given these mixed signals, the Hold rating reflects a cautious stance, acknowledging both the potential for acquisition-driven price support and the underlying operational headwinds.
According to TipRanks, Lejuez is a 5-star analyst with an average return of 8.9% and a 57.00% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Urban Outfitters, On Holding AG, and Abercrombie Fitch.
In another report released yesterday, Barclays also downgraded the stock to a Hold with a $24.00 price target.