uploads/2016/02/fl-pm.png

Credit Suisse Rated Foot Locker as ‘Neutral’

By

Updated

Price movement 

Foot Locker (FL) has a market cap of $9.0 billion. It fell by 3.3%. It closed at $65.81 per share as of February 5, 2016. The price movement on a weekly, monthly, and YTD (year-to-date) basis is -2.6%, 1.3%, and 1.5%, respectively.

At times, the stock broke the support of all the moving day averages. Currently, Foot Locker is trading 1.5% above its 20-day moving average, 1.1% above its 50-day moving average, and 0.92% below its 200-day moving average.

The SPDR S&P 400 Mid-Cap Growth ETF (MDYG) invests 1.2% of its holdings in Foot Locker. MDYG tracks a market-cap-weighted index of growth companies culled from the S&P 400. MDYG’s YTD price movement is -7.4% as of February 4, 2016.

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 1.1% of its holdings in Foot Locker. IVOG tracks a market-cap-weighted index of growth companies culled from the S&P 400.

The market caps of Foot Locker’s competitors are as follows:

  • Walmart (WMT) – $214.5 billion
  • DSW (DSW) – $2.1 billion
Article continues below advertisement

Credit Suisse initiated coverage of Foot Locker

Credit Suisse rated Foot Locker as “neutral.” It set the price target of $70.0 per share.

On January 8, 2016, Bank of America Merill Lynch upgraded Foot Locker’s rating to “buy” from “neutral.” It set the price target of $74.0 per share.

Performance in fiscal 3Q15

Foot Locker reported 3Q15 sales of $1,794.0 million—a rise of 3.6% compared to sales of $1,731.0 million in 3Q14. It opened 30 new stores, remodeled or relocated 48 stores, and closed 16 stores in 3Q15. It reported litigation and impairment charges of $100.0 million in 3Q15.

Its net income and earnings per share fell to $80.0 million and $0.57, respectively, in 3Q15—compared to $120.0 million and $0.82, respectively, in 3Q14.

Meanwhile, its cash and cash equivalents fell by 9.5%. Its merchandise inventories rose by 1.4% in 3Q15 on a quarterly basis.

Foot Locker’s price-to-earnings and price-to-book value ratios are 17.7x and 3.6x, respectively, as of February 5, 2016.

Advertisement

More From Market Realist