Foot Locker’s (NYSE: FL) share price target was cut to $33 from $38 by Citi analyst Paul Lejuez on Thursday, with the firm’s rating on the stock maintained at Neutral.
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Foot Locker shares are currently trading at $32.32 per share after an 8% gain on Thursday. However, they are down 26% in 2022 and over 40% in the last 12 months.
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Lejuez also opened a “negative catalyst watch” on Foot Locker shares heading into the company’s upcoming earnings release on November 18.
The analyst told investors in a research note that he anticipates a modest beat in the third quarter, although the focus will be on Foot Locker’s fourth-quarter guidance due to Adidas’ decision to sever ties with the Yeezy brand.
He added that Yeezy has rivaled the iconic Jordan Retros in recent years based on pricing and launch excitement. In addition, with Foot Locker’s lowered portion of high-heat Nike products, it has increasingly relied on its partnership with Adidas to offset the loss of Nike.
The Citi analyst’s checks indicate there will be no Yeezy products in stores in the fourth quarter, which he believes will be a “significant headwind” to Q4 comparisons.
In late October, JPMorgan, looking ahead to Foot Locker’s third quarter release, lowered its price target on Foot Locker to $37 from $40, maintaining a Neutral rating on the shares.
