Is there new life in Foot Locker (NYSE:FL)? Analysts seem to think so. So too do customers and even investors. Foot Locker was up over 9% at one point in Thursday morning’s trading, and that’s thanks to several factors working together to produce a whole that’s increasingly hard to ignore.
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Piper Sandler, via analyst Abbie Zvejnieks, not only hiked its rating to Overweight, but also hiked its price target up to $33 per share. The reasons why might not have been the most concrete, but they were sufficient for Piper Sandler; the rating was hiked after reports that lower-income consumers were starting to make a comeback, and that price deflation is finally starting to kick in, at least in some sectors. That in turn should provide a tailwind to Foot Locker customers, and by extension, Foot Locker itself.
“Hype for the Holidays” Producing Plenty
It’s not just gains in the apparel sector that’s giving Foot Locker its boost; Foot Locker is also making some of its own luck with some powerful marketing. Its “Hype for the Holidays” campaign is indeed producing hype, and in job lots, too; last month saw the campaign start, and so far, it’s brought in around a billion impressions. The impressions are also bringing in paying customers, too; foot traffic is on the rise, and both online and in-store conversions are up as well. The “Hype for the Holidays” campaign is running alongside Foot Locker’s “Heart of Sneakers” campaign, which is providing something of a multiplier effect and giving Foot Locker a real second wind.
What is the Price Target for Foot Locker?
Turning to Wall Street, analysts have a Hold consensus rating on FL stock based on two Buys, nine Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 6.34% loss in its share price over the past year, the average FL price target of $22.07 per share implies 29.26% downside risk.
