Cowen Cuts Price target on Finish Line (FINL) to $22 Following 2Q16
Cowen maintained a Market Perform rating on Finish Line (NASDAQ: FINL), and cut the price target to $22.00 (from $25.00), following the company's 2Q16 earnings results. FINL reported EPS of $0.57, in-line with consensus. Management maintained its FY16 SSS and EPS guidance for positive low- to midsingle digit growth.
Analyst John Kernan commented, "We see few levers to generate strong EPS growth over the next 3-5 years which justifies FINL's depressed valuation. FINL is struggling to drive consistent +MSD SSS & gross margin deterioration is ongoing despite a strong athletic environment which is benefiting its largest supplier NKE and its largest competitor FL. Our PT is cut to $22 from $25, reflecting 12x our FY17E EPS or 5x FY17E EV/EBITDA."
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Shares of Finish Line closed at $24.77 yesterday.