Bearish Analysts Blitz Foot Locker After Sell-Off

FL suffered its worst day in two years on Friday

Foot Locker, Inc. (NYSE:FL) slumped 18.9% on Friday -- marking the retail stock's worst day sine Aug. 18, 2017, when it plunged 27.9% -- after the athletic apparel retailer's earnings report fell short of expectations. FL shares are now trading at levels not seen since the fourth quarter of 2017, and bearish analysts are rushing to adjust their outlooks.

Since late Friday, at least eight brokerages have slashed their FL price targets, including Susquehanna, which also downgraded the retail stock to "neutral" from "positive." The lowest target price came from Evercore ISI, which dropped its target to $35 from $40 -- roughly in line with last week's close at $34.

There's room for more analysts to issue bear notes on Foot Locker stock, should the shares widen their 36% year-to-date deficit. Prior to today, seven brokerages maintained a "strong buy" rating on the retailer, compared to four "holds," and just one "sell." Plus, the average 12-month price target of $45.74 is a stiff 36% premium to the stock's current perch at $33.57, down 1.3% today.

More short selling could keep pressure on FL stock, too. Short interest jumped 10.8% in the two most recent reporting periods to 12.23 million shares, or 10.9% of the equity's available float. These bears are sidelined today, though, with Foot Locker still on the short-sale restricted list after Friday's sell-off.