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On Tuesday, UBS analysts increased the price target for Foot Locker (NYSE:FL) stock to $24 from $15 while maintaining a Neutral rating. The adjustment follows Foot Locker’s agreement to be acquired by DICK’s Sporting Goods, announced on May 15. Currently trading at $23.75, InvestingPro data shows the stock has demonstrated strong momentum with significant returns in recent months, though technical indicators suggest it may be overbought.
The acquisition deal values Foot Locker at a total enterprise value of $2.5 billion, based on the acquisition price of $24 per share. Both Foot Locker and DICK’s Sporting Goods boards have unanimously approved the transaction, which is expected to be completed in the second half of 2025. With a current market capitalization of $2.27 billion and a healthy current ratio of 1.64, Foot Locker maintains strong liquidity position heading into the merger.
UBS analysts cited the acquisition agreement as the primary reason for the revised price target. They explained that Foot Locker shares are likely to trade based on the dynamics of the deal rather than the company’s fundamentals.
The market is closely monitoring the progress of the acquisition, as the companies anticipate finalizing the transaction later this year. The revised price target reflects the anticipated completion of the deal and its terms.
In other recent news, Foot Locker has reported its first-quarter results for 2025, which aligned with prior expectations but fell short of consensus estimates. The company’s sales trends have remained weak despite efforts such as store remodels and an updated loyalty program. Foot Locker is set to be acquired by Dick’s Sporting Goods (NYSE:DKS) for $24 per share, a transaction valued at $2.4 billion and expected to finalize in the latter half of 2025. Analysts from Williams Trading, Jefferies, and Citi have all adjusted their price targets for Foot Locker to $24, reflecting the agreed acquisition price. Barclays (LON:BARC) has downgraded Foot Locker from Overweight to Equal Weight, while also raising the price target to $24, citing the anticipated merger benefits, including potential cost synergies and international expansion. Shareholders have approved an amendment to Foot Locker’s Stock Incentive Plan, among other agenda items, during the 2025 Annual Meeting. However, a proposal for reducing greenhouse gas emissions in line with the Paris Agreement was not approved. The merger with Dick’s Sporting Goods is seen as a strategic move to create a global leader in the sports retail industry, with expectations of significant financial and operational benefits.
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