Foot Locker Stock Price Target Lowered by Baird Amid Short-Term Concerns
In a recent update, Baird reduced the price target for Foot Locker (NYSE:) from $35.00 to $27.00 while maintaining a Neutral stance. Despite a recent share price increase, Baird remains cautious about the retailer's short-term prospects.
Investor confidence in Foot Locker's ability to improve sales at full price has led to a 9% stock increase since July. However, Baird points to volatile sales performance and anticipates challenges in the upcoming months, including a shorter holiday shopping window and potential market adjustments from Nike.
Baird's analysis suggests near-term downside risks for Foot Locker's stock, potentially falling into the low-$20s. The firm has also issued a Bearish Fresh Pick short-term trading call through November.
In other news, Foot Locker's former senior director, Barry Siegel, has been charged with insider trading by the SEC. Despite reporting positive financial performance for the second quarter of 2024, including strong sales in North America and the EMEA region, Foot Locker is adjusting its gross margin forecast for the full fiscal year downward.
Analysts at Seaport Global Securities maintained a neutral rating on Foot Locker, while Telsey Advisory Group raised its price target to $30.00. The company is implementing strategic changes, including closing operations in certain regions and enhancing its digital presence.
Overall, the outlook for Foot Locker remains uncertain in the short term, with potential challenges ahead. Investors should closely monitor the company's performance and consider the impact of market factors on their investment decisions.