Foot Locker, under pressure amid turmoil in the activewear market and a strong shoe game from Amazon, is holding its own quite well and is undervalued as a result, according to recent analyst notes from Barclay’s and Morgan Stanley cited by Benzinga.
Even if the athletic shoe retailer’s growth flatlined, it would be worth more than what it’s trading at on Wall Street, according to Barclay’s, Benzinga reports.
Foot Locker is poised to “defend its industry position,” Morgan Stanley analyst Jay Sole said in a note emailed to Retail Dive. Despite lowering its Foot Locker share target from $70 to $65, Morgan Stanley upgraded its rating from Equal Weight to Overweight but lowered its price target from $70 to $65.
Foot Locker claims that late tax refunds disrupted its best efforts to upgrade its stores and salvage slowing sales and traffic — and analysts have mostly bought that excuse, despite an encroaching challenge from Amazon in the athletic shoe market. Nike didn’t help much when in June it confirmed it would establish direct sales via Amazon, threatening brick-and-mortar retailers.
Nevertheless, Foot Locker is the No. 1 seller of Nike brand shoes in the U.S., according to One Click Retail,…