11:46 AM EST, 03/06/2024 (MT Newswires) -- Foot Locker's ( FL ) shares are returning some of the excessive gains accumulated prior to the company's fiscal Q4 results, which topped Wall Street's estimates, Wedbush Securities said Wednesday.

The retailer's shares were down nearly 28% in recent Wednesday trading after its fiscal Q4 adjusted earnings and revenue surpassed the Street's views, but its full-year earnings guidance trailed estimates.

"The stock clearly got ahead of itself heading into Q4 earnings, so shares are giving some of the gains back despite beating Q4 guidance," Wedbush analysts Tom Nikic and Matt Quigley said in a note. "With valuation still fairly lofty, we remain sidelined here, as we believe the stock already reflects much of the company's medium-term margin recovery opportunity."

The brokerage has a neutral rating on the stock and it lowered the price target to $25 from $30.

Price: 24.52, Change: -9.80, Percent Change: -28.55