Two research firms disagree on the outlook for athletic footwear and apparel retailer Foot Locker (FL), as Cowen earlier today downgraded the stock to Market Perform and Piper Jaffray on April 12 upgraded the shares to Overweight.

BEARISH TAKE: The average selling prices for Nike (NKE) footwear fell 1% in North America in the third quarter, according to Cowen analyst John Kernan. Meanwhile, Foot Locker is offering discounts on many more of its products this year than last year, the analyst stated. Moreover, the growth in demand for the most expensive basketball sneakers is decelerating, Kernan believes. Warning that Foot Locker's same-store sales and margins could come in below expectations, the analyst cut his price target on the name to $66 from $75.

BULLISH TAKE: After Piper Jaffray surveyed teens, analyst Erinn Murphy reported on April 12 that the results were positive for Foot Locker. The survey indicated that spending on footwear by teens increased, and the results suggested that Foot Locker's top two vendors, Nike and Adidas (ADDYY), became more popular. Additionally, the survey indicated that demand for basketball footwear had increased, Murphy stated. Murphy, who called Foot Locker's valuation attractive, set a $67 price target on the shares.

WHAT'S NOTABLE: Although Nike continues to "dominate" in the athletic apparel category, Cowen's consumer survey indicates that Adidas and Under Armour (UA) are gaining a small amount of share in athletic apparel preference in "key demographics," Kernan also reported today.

PRICE ACTION: In morning trading, Foot Locker dropped 2% to $60 per share.

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