On Friday, Foot Locker posted adjusted earnings per share of $1.56 for the fourth quarter, up from the $1.14 the same time the previous year. The retailer also posted strong earnings per share for the year at $4.71 compared with $3.99 from 2017.
Then more good news for the company walked in: Pivotal Research released Monday a note upgrading the company.
Foot Locker "reported much-better-than-expected 4Q results," wrote Pivotal's Mitch Kummetz, who also noted that the company's fiscal 2019 growth outlook "was also well above consensus."
Kummetz even stepped back to acknowledge that Pivotal had a week prior "underestimated" how well the company was positioned for its fourth quarter and overestimated challenges to come. He also said the retailer should not have been downgraded last week.
Foot Locker's Friday close up about 6% to $63.07 also surprised Kummetz, who thought it would rise even higher.
On Monday morning, the retailer hit $64.12 before dipping a bit to $63.24.
Pivotal pegged a target price at $73.
Still, Pivotal warned of risks for the retailer, such as weather, which can influence buying, a high dependence on discretionary spending, competition and what shoes are available for sale.