Analyst suggestions tend to help stock prices, thanks mainly to how said suggestions are supported by data. For Foot Locker (NYSE:FL), one analyst pivot was all that was needed to send investors rushing to send Foot Locker higher in Tuesday’s trading session.
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Foot Locker managed to get the attention of Citi analyst Paul Lejuez, who noted that its guidance for the upcoming season has been “conservative.” Further, conservative guidance here means that Foot Locker is likely to turn in beats on earnings and revenue going into the latter half of the year. All these points tend to give retail operations—and most other kinds of stock, too—a boost.
It’s not just conservative guidance, either. Lejuez also offered a note of praise to CEO Mary Dillon, whose time at Ulta Beauty (NASDAQ:ULTA) provided vital insight into retail operations. Throw in plans to close over 400 stores by 2026’s end, and that’s all anyone will need to believe that Foot Locker means business. Dubbed the “Lace Up” business plan, the mall stores will be shutting down, or at least the lower-performing ones. But in their stead, free-standing shops will emerge with more niche appeal. Throw in a revived partnership with Nike (NYSE:NKE), and that’s a formula for likely success.
Other analysts tend to agree. Foot Locker is considered a Moderate Buy by analyst consensus. Meanwhile, Foot Locker stock offers 11.12% upside potential thanks to its average price target of $46.86.
