Finish Line shares rise on "Buy" ratings
NEW YORK (AP) — Shares of Finish Line Inc. rose Tuesday after two analysts reiterated their "Buy" ratings of the footwear retailer's stock.
THE SPARK: Canaccord analyst Camilo Lyon and Citi analyst Kate McShane cited rising sales for reiterating their "Buy" rating on Finish Line's shares.
Lyon raised his target price on the stock to $28 from $26. McShane raised her target price to $30 from $26.
THE BACKGROUND: The company, which sells sneakers and athletic clothing, said in June that its fiscal first-quarter profit fell 25 percent, as higher costs offset sales growth.
THE ANALYSIS: After speaking with a footwear retailer, McShane said in a note to clients that he believes sales of sneakers were strong during the back-to-school season.
Lyon said his independent research found that sales of Finish Line's basketball and kids products are growing.
Dianna Boyce, Finish Line's spokesperson, told The Associated Press that the company could not comment because it is in a quiet period before the release of its second-quarter earnings on Sept. 28.
SHARE ACTION: Up 86 cents, or 3.6 percent, to $24.65 in afternoon trading Tuesday. Its shares are still down 5.7 percent since hitting a 52-week high of $26.16 in March.