FBR Capital Thinks The Finish Line’s Stock is Going to Recover

By Ryan Adsit

In a report released yesterday, Susan Anderson from FBR Capital reiterated a Buy rating on The Finish Line (NASDAQ: FINL), with a price target of $22. The company’s shares opened today at $13.97, close to its 52-week high of $24.52.

Anderson observed:

“FINL reported adjusted F1Q18 EPS of $0.23, versus FBR/consensus of $0.26/ $0.23 (see earlier note for details). SSS came in lower than expected (reported – 1.1%, versus guidance of a +LSD increase) as a result of difficult product launch comparisons and a –LDD decrease in soft goods. However, we believe FINL is well positioned to make FY guidance, particularly as it cycles the soft lines impact in F2H18; its online systems are now in place to better capitalize on e-commerce sales. We are also starting to see signs of a better running sales environment, with both technical offerings such as adidas’ Boost and NKE’s VaporMax, as well as casual options such as adidas’ Tubular Shadow and NKE’s Huarache gaining momentum, which should benefit FINL.”

According to TipRanks.com, Anderson is a 1-star analyst with an average return of -0.7% and a 43.8% success rate. Anderson covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Ascena Retail Group, and Abercrombie Fitch.

Currently, the analyst consensus on The Finish Line is Moderate Buy and the average price target is $16.20, representing a 16.0% upside.

In a report issued on June 23, Jefferies also reiterated a Buy rating on the stock with a $17 price target.

The Finish Line’s market cap is currently $563.5M and has a P/E ratio of 40.45. The company has a book value ratio of 1.2481.

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The Finish Line, Inc. is a premium retailer of athletic shoes, apparel and accessories for men, women and kids throughout the U.S. It operates through two retail divisions, one under the Finish Line brand name and other on Running Specialty Group. The Finish Line division is a retailer of athletic shoes, apparel, and accessories.