Morgan Stanley ‘skeptical’ of ‘show-me’ story Foot Locker’s long-term targets

Morgan Stanley analyst Alex Straton appreciates the work Foot Locker (FL) has done under new CEO Mary Dillon in hopes of re-igniting future revenue growth, including better understanding its customer base and banner positioning and revisiting its relationship with Nike (NKE). However, following the company’s first investor day under Dillon, the firm said it is "skeptical" of the achievability of the company’s long-term targets and it continues to view Foot Locker as a "show-me" story. Morgan Stanley maintains an Equal Weight rating and $33 price target on Foot Locker shares.