Foot Locker Stock Brushes Off Analyst Upgrade

The equity earlier hit its highest level since May 2019

Deputy Editor
Jan 15, 2021 at 10:03 AM
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Foot Locker, Inc. (NYSE:FL) just received a bull note from B. Riley this morning. The analyst upgraded the shoe retailer to "buy" from "neutral," and lifted its price target to $58 from $39. Despite this, the shares are down 0.4% at $47.12 at last check. 

Hitting its highest level since May of 2019 straight out of the gate, FL shares have pulled back below the $47.60 mark, where they have been consolidating for most of the week. The equity managed to push past its pre-pandemic levels earlier this month, with the help of its ascending 60-day moving average. In fact, in 2021 alone, Foot Locker stock is up over 17%. 

A closer look at analyst sentiment show most members of the brokerage bunch cautious on the stock. Of the 18 in coverage, 10 sported a "hold" or worse rating coming into today, while the 12-month consensus price target of $45.43 represents a 4% discount to last night's close. Should FL keep climbing, another round of bull notes could put some wind at the security's back. 

Meanwhile, short-sellers have been building their positions, with short interest up 11.2% during the last reporting period. The 7.03 million shares sold short make up 7.8% of FL's available float, or 3.6 days worth of pent-up buying power. Should some of these bearish bets begin to unwind, a short squeeze could help propel the equity higher as well. 

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