B. Riley Upgrades Finish Line Before Earnings On Merchadising, Running Category Momentum
In a report published Thursday, B. Riley analyst Jeff Van Sinderen upgraded the ratings on Finish Line Inc (NASDAQ: FINL) from Neutral to Buy, while raising the price target from $27 to $33, ahead of the company's 1Q results, scheduled to be reported on June 26.
"With FINL's merchandise assortment improving and the running category (FINL's forte) building momentum in non-technical styles that match well with the trend in apparel bottoms, it stands to reason that at least some metrics of FINL's business should begin to inflect during the b-t-s period versus easier comparisons to LY," analyst Jeff Van Sinderen said.
The company had "got caught in the downdraft in technical running" around this time last year. "We have recently witnessed an easing of promotional messaging at the core chain and we think that bodes well for FINL's positioning heading into b-t-s," Sinderen added.
While some work remains to be done at the core chain and RSG, the rollout of Macy's is now behind and further RSG expansion has been put on hold. Finish Line can now focus more on "improving the quality of business and overall profitability," B. Riley noted in the report.
The EBITDA estimates for FY16 and FY17 have been raised from $167MM to $171MM and from $175MM to $187MM, respectively, to reflect improving merchandising and easier comparisons ahead.
Latest Ratings for FINL
|Dec 2016||Bank of America||Downgrades||Buy||Neutral|
|Dec 2016||Canaccord Genuity||Downgrades||Buy||Hold|
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