- Sterne Agee recommends buying Foot Locker (NYSE:FL) over Nike (NYSE:NKE) to capture the expected growth in the running and basketball shoe categories.
- D.A. Davidson is also cautious on Nike in front of earnings later this week. The firm forecasts future orders of 11% for the Swoosh, but warns on stronger F/X and competitive headwinds in FY16. Shares are rated Neutral with a $101 price target ($110 5-year PT).
- The aggressive push by Under Armour into running and basketball shoes is seen as another reason to buy Foot Locker to capture Nike's growth without some of the risk.
- The other side of the argument is Nike's growing tech presence which a Foot Locker investment fails to capture.
- Previously: Futures growth and F/X impact sized up on Nike ahead of earnings (Mar. 16 2015)
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