Morgan Stanley analyst Alexandra Straton maintains $Foot Locker (FL.US)$ with a sell rating, and maintains the target price at $16.
According to TipRanks data, the analyst has a success rate of 62.1% and a total average return of 8.0% over the past year.
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 as trends weakened over the quarter and promotions increased. The forecast for fiscal 2024 has been revised down for sales and earnings due to continued promotions, though there's a strategic pivot towards footwear in Q4.
The recent Q3 miss and FY guidance reduction at Foot Locker reinforces previous skepticism regarding a potential turnaround, offering further concerns for pessimistic outlooks. Continued risk to both full-year and mid-term street EPS projections is anticipated.
The firm has adjusted its FY24 EPS projection downward by 19% to $1.22 to consider ongoing margin pressures in Q4. It believes that the stock's low multiple counterbalances risks related to sales revitalization and margin recovery.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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