UBS Raises Price Target on Finish Line (FINL) to $23; Reiterates Neutral
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
UBS reiterated a Neutral rating on Finish Line (NASDAQ: FINL), and raised the price target to $23.00 (from $20.00), following the company's 2Q comp beat. However, pressure to clear inventory is holding back EPS.
Analyst Michael Binetti commented, "We were heartened to see FINL make significant progress to clear inventories ahead of the important fall/holiday period, posting a +10.5pp sequential improvement in the sales-inventory growth spread since F1Q. Recent comments on clean inventories from FINL, FL, and UA all bolster our confidence in the forward outlook for the athletic space heading into fall/holiday. FINL expects F3Q SSS to be +HSD (lapping an easy -6% compare). That said, Consensus models already expect solid 3Q SSS (UBSe: +9.3%, Street: +10%). We also note that FINL posted solid SSS in Jun/Jul (coinciding with heavier promo levels to clear inventory), though SSS decelerated to +3% in Aug (and remain at +LSD in September)—making a path to F3Q SSS upside less clear."
Shares of Finish Line closed at $22.61 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rosenblatt Upgrades NETGEAR (NTGR) to Buy
- Jefferies Raises Price Target on VMware (VMW) to $91 Following Better Than Expected 3Q
- Mizuho Securities Downgrades Community Health (CYH) to Underperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!