UPDATE: Goldman Sachs Initiates Finish Line at Hold on Execution Risk

Goldman Sachs initiated coverage on Finish Line

with a Hold rating and a $22 price target. Goldman Sachs said, "After a contentious 12-18 month investment period, we think FINL is two quarters away from re-accelerating earnings growth (off of a modest low-single-digit same-store sales growth assumption) as up-front costs start to drive leverage and the new Macy's deal drives accretion. … Our positive fundamental view is offset by elevated execution risk, as management tends to a number of growth initiatives including (1) store technology upgrades, (2) core systems upgrades, (3) e-commerce, (4) The Running Company (operated by Gart Capital), and (5) Macy's shop-in-shops. The company's inconsistent track record of managing multiple concepts, albeit under a different leadership team, leaves little room for investor patience amidst a strong product cyclical." Finish Line closed at $20.65 on Monday.