Finish Line Shares Rally Following Q4 Results; Analysts Leaning Toward Bullish Side Of Things

BB&T Capital upgraded Finish Line Inc (NASDAQ: FINL) to Buy from Hold and Monness Crespi Hardt upgraded Finish Line to Buy from Neutral after the company's quarterly earnings and sales topped Street view. Shares of the Indianapolis, Indiana-based footwear retailer surged as much as 14 percent.However, the company's full-year earnings view came in below the Street's forecast. Finish Line sees full-year adjusted EPS of $1.50 to $1.56 and same-store sales growth of 3% to 5%, versus consensus expectations for EPS of $1.64."While FINL has upside drivers including accelerating comps, easy compares in 2H, closure of small/unprofitable stores, noticeably better product allocations (from our store visits), & a cheap stock price (trading at ~11x its 12m fwd-EPS vs 13x 3-yr avg) we remain cautious until visibility improves that the core business can consistently comp profitably as supply chain issues subside," UBS analyst Michael Binetti wrote in a note to clients.The analyst lowered FY17 EPS estimates to $1.55 from $1.71 based on reduced near-term visibility. The analyst's first quarter EPS estimate also came down to $0.21 from $0.30.However, Binetti raised his price target on FINL shares to $19 from $18, while maintaining a Neutral rating on the stock.Meanwhile, Citigroup maintained Finish Line with a Buy rating and raised the price target to $23.00 from $20.00.Shares of Finish Line were up 13 percent at $21.64. They have gained 19 percent this year.