Baird cuts Foot Locker target, adds ‘Bearish Fresh Pick’ trading call

Baird lowered the firm’s price target on Foot Locker to $27 from $35 and keeps a Neutral rating on the shares. The analyst also added a “Bearish Fresh Pick” trading call on the shares. The firm is signaling a more cautious short-term trading view given signs of softer recent spending for Foot Locker U.S. and potentially reduced near-term sales visibility in upcoming months. Baird lowered second half of 2024 comp estimates to up 1%, below the consensus of 3%, and also embeds more conservatism into fiscal 2025. Foot Locker’s multi-year earnings and margin recovery “may justify a more constructive stance over time,” but in the near term stock could have 15%-20% downside if the valuation returns to the July lows, contends the firm.