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 $37. The company’s shares closed yesterday at $29.26.
Fadem commented:
“We expect key topics at ICR to include: 1) discussion around housing and underlying trends (ex: year ago hurricane impact); 2) competition from HD/LOW, particularly in the high growth LVT category; 3) an update on tariffs and sourcing initiatives; and 4) strategy for a 2019 facing considerable moving parts. While FND likely holds off on providing its 2019 outlook until late-February or early-March, we believe the potential level of comp deceleration (vs. 2018) and a wide range of margin outcomes present key sticking points for investors today. While these factors add uncertainty, we like the LT setup with shares now trading in line with EV/EBITDA (at ~11x). At these levels, we believe investors underappreciate FND’s considerable LT growth runway, improving quarterly comps throughout 2019, and mid-teens+ EPS growth.”
According to TipRanks.com, Fadem is a 3-star analyst with an average return of 2.4% and a 50.0% 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 $36.89, representing a 26.1% upside. In a report issued on January 2, Longbow Research also reiterated a Buy rating on the stock with a $40 price target.
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Floor & Decor Holdings Inc’s market cap is currently $2.85B and has a P/E ratio of 20.99. The company has a Price to Book ratio of 5.05.
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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.
