Jefferies Sees Finish Line (FINL) Making the Podium, Maintains Buy Rating and $28 Price Target

Jefferies is reiterating its Buy rating and $28 price target on shares of Finish Line (NASDAQ: FINL) as the company is positioned to capitalize on one of the strongest and most distinct trends in retail with its running and basketball sneakers.

The firm forecasts that FINL will post same-store-sales for Q1 of 10 percent, which is inline with the company's guidance following its last earnings conference call. The company was really helped out this past quarter with new releases from Adidas, Reebok, and Nike (NYSE: NKE).

In the second half, Jefferies believes that trends should remain strong as the marquee vendors invest behind innovative product launches and as Q4 will consist of an extra week. The extra week should result in an additional $0.05-$0.07 in EPS and 5-7 percent pts. for comps.

Jefferies feels that Finish Line will announce larger or more buybacks in the coming quarters due to the managements attitude at the last conference call. FINL currently has two million shares remaining on its buyback plan, which expires at the end of 2011. Buying these shares could bring $0.05-$0.10 upside to the firms EPS estimate of $1.60 for fiscal 2012. Jefferies fiscal 2013 EPS estimate is $1.70.

For more ratings news on Finish Line click here and for the rating history of Finish Line click here.

Shares of Finish Line closed at $22.98 yesterday.

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