Foot Locker is bucking the broad market selloff today
Foot Locker Inc (NYSE:FL) is bucking the broad-market selloff today, up 3.3% at $33.35 at last check, after Goldman Sachs initiated coverage with a "buy" rating and $38 price target. The firm cited "several enduring tailwinds" for the retail stock, noting key vendors, strong category dynamics and product cycles, a "solid" balance sheet, and more.
Since we last checked in with FL in mid-August, the stock has gained momentum on the charts. The equity is up 10.2% in September alone, after breaking past long-term pressure at the $31 region.
On the analyst front, 11 of the 17 in coverage sport a tepid "hold" rating, with five a "buy" or better and one "sell." Meanwhile, the 12-month consensus price target of $32.70 is now a 2.4% discount to current levels, suggesting there is still room for price-target hikes to the retailer.
Though short interest has started to drop off, down 10.25% during the last two reporting periods, the 8.49 million shares sold short still account for 8.7% of the stock's available float. It would take nearly three days to buy back these bearish bets at FL's average pace of trading, an ample amount of buying power that could hit the market and fuel additional gains.