UPDATE: Sterne Agee Lowers PT to $25 on Finish Line

Sterne Agee cuts its price target $2 to $25 on Buy-rated Finish Line

following disappointing results and outlook due to investments in digital technologies in stores and online. Sterne Agee says, "We are lowering our FY13 and '14 EPS/revenue estimates from $1.87/$1.42B to $1.61/$1.44B and $2.07/$1.48B to $1.85/$1.50B. We are forecasting SSS to grow 5.3% in FY13 and 4.0% in FY14. While we appreciate investors' disappointment with the lack of near-term EPS growth, we view FINL's increased spending plans on digital and ecommerce not only as prudent but necessary. In the over-stored and low-growth consumer landscape of the U.S., above-average growth for retailers will need to come via taking share from overall consumer spending as well as increased share from their direct competitors." FINL closed at $21.22 a share on Friday.