Amazon Won't Destroy Foot Locker, Hints Top Analyst
Investor concerns surrounding Foot Locker are being overblown.

Shares of Foot Locker ( FL) were spiking over 4% during Tuesday morning trading following an upgrade of the stock to "Overweight" from "Equal-Weight" at Morgan Stanley.

The firm assigned a $65 price target on the athletic apparel retailer's stock.

Share weakness predicated on investor concerns regarding Foot Locker's loss of market share to Amazon.com ( AMZN) coupled with worries about brands opting to sell on their own websites, have created an "excellent" buying opportunity, Morgan Stanley analyst Jay Sole contended.

Sole eased investors' uncertainties noting that Amazon and Foot Locker target a different customer base, with less than 5% of Foot Locker's top 200 selling shoes on Amazon. As for other brands opting to sell via their own channels, Sole argues those companies still seek a strong, premium mall presence that Foot Locker offers.

He believes a recent weak same-store-sale performance from Foot Locker was attributed to changing fashion trends, February's tax refund shift, and a downtrend in basketball footwear trends.

Sole sees Foot Locker returning to between 3% to 5% comp growth in future quarters.

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