Morgan Stanley Has Positive Outlook on Finish Line

In a report published Monday, Morgan Stanley analyst Jay Sole reiterated an Overweight rating and $33.00 price target on

. In the report, Morgan Stanley noted, “FINL is an underappreciated athletic footwear play in our view. We think it has attractive self-help growth drivers and a favorable valuation. FINL's 1.3x PEG ratio is 0.4 points lower than the peer 1.8x average. The market is debating how deeply the footwear cycle will trough. We forecast a shallow trough due to four key long-term secular sales drivers. We model a 13% 4-yr. EPS CAGR based on 8% annual sales growth, 40 bps EBIT margin expansion and 7% share count reduction.” Finish Line closed on Friday at $30.02.