Piper Sandler is ‘incrementally more positive’ on Foot Locker stock

December 14, 2023 11:55 AM PST | By Invezz

Piper Sandler is ‘incrementally more positive’ on Foot Locker stock — Image source: Invezz

Foot Locker stock has upside to $33

Abbie Zvejnieks upgraded the footwear retailer today to “overweight” and raised her price target to $33 which suggests a 16% upside on its previous close.

The analyst is constructive on Foot Locker stock primarily because she expects the sportswear company to expand its margins in 2024. Her research note reads:

We have heard some early commentary that the lower income consumer may be beginning to recover from when spending was significantly pressured by inflation.

Earlier this week, the U.S. Bureau of Labour Statistics said inflation stood at 3.1% in November – in line with Dow Jones estimates (find out more).

Apparel is showing signs of deflation

Abbie Zvejnieks is bullish because the apparel category is starting to show some signs of deflation as well which she expects will be a material benefit for $FL moving forward.

The Piper Sandler analyst is “incrementally more positive” on Foot Locker stock because he expects new products in the coming year to boost full-priced sales. The company’s inventory levels have been improving at a good pace as well.

Late in November, the New York-headquartered firm reported market-beating results for its third financial quarter and improved its guidance for full-year sales as well.

Note that Foot Locker currently pays a dividend yield of 5.15% which makes up for another good reason to own it.

Watch here: https://www.youtube.com/embed/_LOTDkwSuE4?feature=oembed

The post Piper Sandler is ‘incrementally more positive’ on Foot Locker stock appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.