UBS raises its target price for Foot Locker to 60 dollars.

(CercleFinance.com) - UBS is maintaining its "buy" rating on Foot Locker, raising its target price for the stock to 60 dollars (vs.
58 dollars) after the company reported quarterly results that exceeded the consensus' expectations. The broker now expects 2014 EPS of 3.42 dollars (vs. 3.31 dollars previously).

The broker's target price values the stock at 14 to 15 times its estimated 2016 earnings per share (4.15 dollars, vs. 4.01 dollars previously).

For the coming quarter, UBS expects EPS of 0.78 dollars, based on sales growth of 5%, a gross margin of 33.4% and an operating margin of 10.5%.

"With sales productivity and margins consistently climbing to new highs, we believe it is an opportune time for Foot Locker to update its long term financial targets" says the broker.

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