Recent Positives Now Baked Into Finish Line Shares; Brean Downgrades

Shares of Finish Line Inc FINL are up close to 40 percent over the last six months, more than doubling the performance of other footwear retailers and outperforming the rest of the S&P 500 by 30 percent.

Ahead of the company’s earnings (expected after-market on December 20), Brean Capital, analyst Eric Tracy downgraded the stock from Buy to Hold. The analyst noted that, after the run-up, the previously identified positives are now “baked in” to the market’s valuation of Finish Line.

Moreover, the analyst sees upside potential on earnings limited by a few headwinds:

• “Stiffening compares.”
• Lackluster innovation potential.
• Moderation of current trends (retro/casual athletic).

“Taking these fundamental points coupled with valuation, risk/reward is now more balanced,” said Tracy.

At last check shares were trading down 3.42 percent at $23.41.