UPDATE: Goldman Sachs Downgrades Finish Line Following Mixed 2Q Earnings Report

In a report published Tuesday, Goldman Sachs analyst Taposh Bari downgraded the rating on

from Neutral to Sell, but raised the price target from $20.00 to $22.00. In the report, Goldman Sachs noted, “FINL's 2Q earnings, while above consensus, did not quell broader concerns we raised on August 8 when we downgraded FL to Neutral and lowered estimates on FINL. These include 1) broader US athletic footwear distribution, 2) slower sell-through beyond a handful of marquee styles, and 3) execution risk around an aggressive and potentially cannibalistic Macy's shop-in-shop roll out. With FINL's P/E now at a 2 1/2 year high and a 24% premium to FL, we downgrade FINL shares to Sell from Neutral and see 12% downside risk to our revised $22, 12-month price target. This compares to an average 5% upside for the rest of our coverage group.” Finish Line closed on Monday at $24.87.