In a report released today, Zachary Fadem from Wells Fargo maintained a Buy rating on Floor & Decor Holdings Inc (FND), with a price target of $45. The company’s shares closed yesterday at $37.18.
Fadem noted:
“We view FND’s long-term growth potential hinging on 4 primary growth opportunities, including: 1) New store growth of 20% annually with a long-term target of 400 stores; in FY19, FND plans for 20 new stores (65% in existing markets), including in densely-populated, and high return markets such as and NY metro. New store performance has improved in recent years, with recent openings approaching $20M sales and low-20% 4-wall EBITDA margins by year 3. 2) Comps supported by share gains in a healthy industry, Pro initiatives, and product adjacencies (including sinks, shower doors, etc., with 2 more categories to debut in FY19); FND has improved in-store service levels by offering a more consultative approach vs. peers, and FND’s design centers generate baskets that are 4x larger.”
According to TipRanks.com, Fadem is a 4-star analyst with an average return of 8.7% and a 68.4% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Advance Auto Parts, and Michaels Companies.
Currently, the analyst consensus on Floor & Decor Holdings Inc is a Moderate Buy with an average price target of $38.86, which is a 4.5% upside from current levels. In a report issued on February 22, Wedbush also maintained a Buy rating on the stock with a $43 price target.
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Floor & Decor Holdings Inc’s market cap is currently $3.63B and has a P/E ratio of 33.67. The company has a Price to Book ratio of 6.21.
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Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls.
