| Author | Message | ||
     Kubang Celebrity Bewarse Username: Kubang Post Number: 36946 Registered: 09-2011 Posted From: 161.141.1.1 Rating: N/A |
FL - S&P has hold rating with $49 target price for next 12 months Another analyst from Argus also has downgraded this to a hold from buy recently - he says "• FL shares are trading at 10.8-times our revised FY18 EPS estimate, below the industry average of 15.1, and at 1.1-times sales, below the industry average of 1.3.We believe prospects for weaker near-term comp sales, operating margins, and EPS growth warrant below-average multiples. We are lowering our rating on Foot Locker Inc. (NYSE: FL) from BUY to HOLD based on our expectations for a slowdown in comp sales and EPS. We believe that it will be difficult for Foot Locker to reach its goal of mid-single-digit comp growth in the second half of FY18 given its heavy reliance on Nike products, which account for more than two-thirds of FL sales. We note that sales of Nike footwear have softened after a strong five-year run and that Nike inventory levels are high. In addition, Foot Locker is seeing weak results in its direct-to-consumer business (13% of revenue), and has been forced to cut prices on its web site. We do not expect a strong recovery in this business in the near term" from fundamentals perspective, TD says "Though the industry is experiencing positive revenue growth as a whole, FL has been unable to grow revenues and is losing market share. This reverses the trend from the previous year when revenue growth at FL led the industry 0.70% to -0.16%, respectively." technically charts are weak obviously. dividend is only around 2.5%; I wouldn't invest in this company, there will be better opportunities elsewhere. Ignorance is bliss |