BTIG analyst Janine Stichter has maintained their neutral stance on FL stock, giving a Hold rating today.
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Janine Stichter’s rating is based on several factors surrounding Foot Locker’s current market position and future prospects. The company has announced a planned acquisition by Dick’s Sporting Goods, which is seen as a positive development due to the favorable acquisition terms, including a premium price per share and a higher-than-average multiple of EV/EBITDA. However, the acquisition comes at a time when Foot Locker is facing significant challenges, such as weaker-than-expected Q1 results, consumer softness, and tariff headwinds.
Despite the strategic benefits of the acquisition, including potential cost synergies and operational efficiencies, there are concerns about Foot Locker’s declining earnings expectations for the coming years. The company’s heavy reliance on Nike, which is experiencing its own difficulties, adds another layer of uncertainty. These factors contribute to a cautious outlook, leading to a Hold rating as the market awaits further clarity on the acquisition’s impact and Foot Locker’s ability to navigate its current challenges.
Stichter covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, On Holding AG, and Foot Locker. According to TipRanks, Stichter has an average return of 6.0% and a 42.99% success rate on recommended stocks.
In another report released today, Citi also maintained a Hold rating on the stock with a $24.00 price target.