Foot Locker price target lowered to $31 from $37 at Piper Sandler

Piper Sandler lowered the firm’s price target on Foot Locker (FL) to $31 from $37 and keeps an Overweight rating on the shares. The firm notes SG&A investments drove a weak 2024 guide, offsetting positive comp sales and 220 bps of gross margin recapture. A second half of the year weighted guide makes the print even more painful, Piper adds. The firm is “encouraged” by return to growth with Nike (NKE) in terms of allocation in the second half of the year, and SG&A could be conservative, though there is little visibility.