Deutsche Bank Downgrades Finish Line (FINL) to Hold; 'Running in Place'
Tweet
Share
E-mailGet Alerts FINL Hot Sheet
Price: $13.51 --0%
Rating Summary:
3 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 3 | New: 2
Rating Summary:
3 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 3 | New: 2
Join SI Premium – FREE
Deutsche Bank downgraded Finish Line (NASDAQ: FINL) from Buy to Hold with a price target of $20.00 (from $40.00) following weak Q2 results and guidance.
The firm comments, "We are downgrading shares of Finish Line to Hold from Buy as shares now represent fair value in our opinion as top-line and earnings growth appear to be subdued near-term. While the 3Q website issues may have been 1x in nature and the company is now appropriately reducing inventory and expense levels, we see no near-term catalysts to propel shares higher as (1) it may take a few quarters to alter the company’s merchandise mix toward basketball footwear, (2) significant investments still remain ahead including new systems, store remodels, and an improved website, and (3) reduced capital expenditures may not necessarily translate into a return of cash to shareholders as the Macy’s store rollout begins in April 2013. We believe FINL is on the road to returning to profitable growth, however, it is unlikely to be the mid teen rate the company previously forecasted, without the sales trends improving."
The firm is modeling a 4.0% comp for 4Q12 and FY13, lowering EPS to $0.77 (guidance of $0.74-$0.78) and $1.63 (from $1.88), respectively.
For an analyst ratings summary and ratings history on Finish Line click here. For more ratings news on Finish Line click here.
Shares of Finish Line closed at $19.04 yesterday.
The firm comments, "We are downgrading shares of Finish Line to Hold from Buy as shares now represent fair value in our opinion as top-line and earnings growth appear to be subdued near-term. While the 3Q website issues may have been 1x in nature and the company is now appropriately reducing inventory and expense levels, we see no near-term catalysts to propel shares higher as (1) it may take a few quarters to alter the company’s merchandise mix toward basketball footwear, (2) significant investments still remain ahead including new systems, store remodels, and an improved website, and (3) reduced capital expenditures may not necessarily translate into a return of cash to shareholders as the Macy’s store rollout begins in April 2013. We believe FINL is on the road to returning to profitable growth, however, it is unlikely to be the mid teen rate the company previously forecasted, without the sales trends improving."
The firm is modeling a 4.0% comp for 4Q12 and FY13, lowering EPS to $0.77 (guidance of $0.74-$0.78) and $1.63 (from $1.88), respectively.
For an analyst ratings summary and ratings history on Finish Line click here. For more ratings news on Finish Line click here.
Shares of Finish Line closed at $19.04 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Downgrades MP Materials (MP) to Neutral
- JPMorgan Upgrades Roblox Corp. (RBLX) to Overweight
- JPMorgan is worried about further S&P 500 sell-off potential
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst EPS View, Analyst PT Change, DowngradesRelated Entities
Deutsche Bank, EarningsSign 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!
