Shoe retailer Foot Locker (FL) just announced a major partnership with Nike (NKE). On the news, Retail analyst Brian McGough moved the company into his top three favorite long ideas.
“If you don’t think this is a clear shot by Foot Locker to get more of Nike’s allocations, you are smoking something that (Cannabis analyst) Howard Penney covers,” McGough explains in this clip from The Call @ Hedgeye.
Foot Locker’s stock price is now over $31, up nearly 90% since the Retail team’s long call on August 23.
“This stock has nearly doubled since we added it to our ‘Best Idea’ long list, but I think it’s got another double left in it," McGough adds. "The best way to play Nike regaining sales momentum and launching new product platforms is actually through Foot Locker, so we’ve upped that on our list.”
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