Foot Locker Is In Short Squeeze Territory, Stock Is Presenting A Buy Says Analyst

Athletic footwear and apparel retailer Foot Locker, Inc (NYSE: FL) had a strong 2022, booking $8.96 billion in revenue along with $893 million in earnings.

An analysis of Foot Locker's valuation metrics revealed the company presented a compelling investment opportunity, according to Gianni Di Poce.

The Foot Locker Analyst: Di Poce noted in his weekly “Benzinga Pro Insider Report” that he’s bullish on Foot Locker, as the company had been investing heavily in expanding its digital presence and its direct-to-consumer operations.

“I am bullish on [Foot Locker] so long as the stock remains above $33-$34,” the analyst said.

The Call: Upside target of $50-$52

Foot Locker had been opening Power Stores in various markets and had effectively managed inventory and improved supply chain inefficiencies by diversifying its merchandise and vendor mix. The company continued to roll out important growth banners and a cost-saving program projected to deliver $200 million in annual savings.

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The stock is also in short squeeze territory, Di Poce noted, as roughly 13% of its float is currently sold short.

Di Poce noted Foot Locker had made organizational shifts at the C-level with the CFO stepping down and new chief operating and chief commercial officers appointed.

The Technicals: The stock is trying to break out from a multi-month saucer formation, which could lead to an acceleration in upside momentum.

Other analyst ratings:

Morgan Stanley: Equal Weight

Citigroup: Neutral

Deutsche Bank: Hold

JP Morgan: Neutral

Check out more analyst ratings, here.

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