Recent Positives Now Baked Into Finish Line Shares; Brean Downgrades

Shares of Finish Line Inc (NASDAQ: FINL) are up close to 40 percent over the last six months, more than doubling the performance of other footwear retailers and outperforming the rest of the S&P 500 by 30 percent.

Ahead of the company’s earnings (expected after-market on December 20), Brean Capital, analyst Eric Tracy downgraded the stock from Buy to Hold. The analyst noted that, after the run-up, the previously identified positives are now “baked in” to the market’s valuation of Finish Line.

Moreover, the analyst sees upside potential on earnings limited by a few headwinds:

• “Stiffening compares.”
• Lackluster innovation potential.
• Moderation of current trends (retro/casual athletic).

“Taking these fundamental points coupled with valuation, risk/reward is now more balanced,” said Tracy.

At last check shares were trading down 3.42 percent at $23.41.