08:10 AM EST, 03/06/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $3 to $18, based on 10.3x our FY 25 (Jan.) EPS estimate and in line with the company's 5-year average forward P/E multiple of 10.1x. We lower our FY 25 EPS estimate by $0.25 to $1.75 and initiate our FY 26 EPS estimate at $2.00. FL posts normalized Q4 EPS of $0.38 vs. $0.97, $0.06 above consensus estimates on revenues of $2.38B vs. $2.33B and $105M above estimates. Q4 gross margin compressed 350 bps Y/Y due to higher markdowns, while SG&A remained flat as a percentage of sales. During Q4, FL opened 29 stores and closed 113 stores. FL expects flat sales in FY 25 with non-GAAP EPS between $1.50 and $1.70. FL also plans to close 4% of its stores in the new fiscal year. We believe valuation is now extreme after shares have doubled since October and now trade at 18x the upper end of its full year guidance and well above its 5-year average forward P/E multiple. FL has not proven it can grow top or bottom line consistently in this new retail environment of direct-to-consumer.