Analyst Sam Poser of Williams Trading maintained a Hold rating on Foot Locker (FL – Research Report), retaining the price target of $18.00.
Sam Poser has given his Hold rating due to a combination of factors surrounding Foot Locker’s current management and financial performance. The recent promotion of Frank Bracken to President suggests potential further changes in the company’s executive team, which introduces a level of uncertainty. Although Mary Dillon remains the CEO, the transition in leadership roles might impact the strategic direction and execution of the company’s plans.
Additionally, Foot Locker’s financial performance has been inconsistent, with the company missing its initial annual guidance significantly in the past two fiscal years. While the guidance for FY25 seems reasonable, it is not conservative and relies heavily on improvements in the latter half of the year. This cautious outlook, combined with the potential for further executive changes, supports the Hold rating as investors may want to wait for clearer signs of stability and performance improvement.
Poser covers the Consumer Cyclical sector, focusing on stocks such as Nike, Foot Locker, and Deckers Outdoor. According to TipRanks, Poser has an average return of 15.6% and a 51.02% success rate on recommended stocks.
In another report released on March 21, Jefferies also maintained a Hold rating on the stock with a $19.00 price target.