.September 25, 2024 10:02 AM

Foot Locker (NYSE:FL) shares dropped 2% in pre-market trading as Baird analysts cut the price target to $27.00 from $35.00, maintaining a Neutral rating. Analysts issued a short-term bearish call through November due to increased near-term risks despite a 9% stock rise since July. Recent optimism from improved full-priced sales and potential margin recovery contrasts with sales volatility, especially weak September performance post back-to-school season. Uncertainties include a shorter holiday shopping season and potential marketplace adjustments tied to Nike’s leadership change. Analysts warned of potential stock decline to low $20s with reduced forward P/E ratio of 12.5-13X.