Canaccord Genuity Cuts The Finish Line PT to $8 from $14; Maintains Hold Rating

Canaccord Genuity lowered its price target on The Finish Line (FINL) to $8 from $14, reiterating its hold rating after the company pre-announced weak FQ2 results and lowered guidance for the balance of the year.

The company now expects FQ2 EPS to be $0.08-$0.12 (vs previous $0.36 estimate and consensus at $0.37) based on both a comp decline of 4.6% and gross margin pressure.

The broker estimates an EPS of $0.49 in F18 and $0.81 of EPS in F19, down from $1.15 and $1.32, respectively.

“This sharp collapse of FINL’s business underscores the category challenges facing athletic, largely promulgated by NKE’s innovation lull and ensuing aggressive promotional stance. Simply put, it is crippling the retailers,” analyst Camilo Lyon said in the note.

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