Tuesday, FBR Capital Markets initiated coverage of Foot Locker, Inc. (FL) stock with a Market Perform rating and a price target of $11.
Analyst Eric Tracy noted that rationale for our rating stems primarily from valuation, coupled with a lack of visibility to a turn in comps, and subsequent deleverage of fixed costs, against a consumer macro backdrop that remains tenuous. As the largest mall-based athletic retailer, Foot Locker has the potential to take share from a rationalizing market, but the analyst believes that current headwinds to top-line reacceleration and an intensifying competitive landscape strain visibility to the top line.
The analyst believes management has done a solid job executing on its strategy to improve profitability with tight inventory control, reduce expenses, and capitalize on more favorable real estate renewals/transactions, but these moves may also temper comp growth over the near term.
Currently, FL is up $0.09 or 0.73% and trading at $12.44.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.