Sterne Agee Reaffirms "Buy" Rating on Foot Locker (FL)

Sterne Agee Reaffirms “Buy” Rating on Foot Locker (FL)

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Sterne Agee analyst reported on Monday that he is reaffirming a “Buy” rating on foot apparel company, Foot Locker, Inc. (FL).

Analyst Sam Poser has reiterated a “Buy” rating and $41 price target on FL. This price target suggests a 20% increase from the stock’s current price of $32.79. Posers believes that now is a good time to buy following the company’s weak fourth quarter results.

The stock is currently trading 12 times below 2013 estimates, which is partially a result of slow income tax returns. However, the analyst views the company as a good buy as sales are expected to pick up as FL continues to obtain market share from competitors.The analyst also sees international sales continuing to be strong.

Although the analyst said that peak margins are still years away, he noted that margins continue to improve.

Foot Locker shares were mostly flat during premarket trading Monday. The stock has increased 8% in the past year.

The Bottom Line
Shares of Foot Locker, Inc. (FL) have a 2.44% yield, based on Friday’s closing price of $32.79.

Foot Locker, Inc. (FL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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