Foot Locker price target lowered to $28 from $31 at Evercore ISI

Evercore ISI analyst Michael Binetti lowered the firm’s price target on Foot Locker (FL) to $28 from $31 and keeps an In Line rating on the shares. The firm says Foot Locker’s Q4 results and 2024 guidance shined a bright light on several of the fears in the bear case. Evercore is lowering its 2024 EPS to $1.70 from $2.00 accordingly. That said, the firm notes Foot Locker did point to very fundamental investments in a new loyalty program, a mobile app relaunch, shifting capex away from the struggling WSS into a tested store remodel program for the core FL/Kids FL banners, and a path to returning to positive year-over-year allocations with Nike (NKE) in Q4. With the stock dislocated down, it’s getting harder to see what incremental negatives Foot Locker bears would play for from here, Evercore adds.