Wells Fargo Thinks At Home Group’s Stock is Going to Recover


In a report released today, Zachary Fadem from Wells Fargo maintained a Buy rating on At Home Group (HOME), with a price target of $30. The company’s shares opened today at $23.75, close to its 52-week low of $21.01.

Fadem said:

“We are lowering our FY19/20 EPS estimates by 1c/15c (or -1%/- 10%) to $1.30/$1.38, reflecting: 1) a softer Q4 comp outlook; 2) rising FY20 occupancy costs; and 3) a $12-15M headwind from the opening of HOME’s second DC facility in FY20. Heading into Q3 results, recent execution issues and concerns around tariffs and rising costs had been key sticking points for investors. In isolation, we believe HOME’s very strong Q3 print should have been enough to drive some relief. But in today’s increasingly punitive market, we believe a softer Q4 comp guide (1-2% comps) and additional clarity on the impact of rising costs were the primary drivers of today’s – 14.6% reaction (vs. -15bps SPX).”

According to TipRanks.com, Fadem is a 4-star analyst with an average return of 7.0% and a 57.1% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.

At Home Group has an analyst consensus of Strong Buy, with a price target consensus of $43.60.

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Based on At Home Group’s latest earnings release for the quarter ending July 31, the company reported a quarterly GAAP net loss of $10.07 million. In comparison, last year the company had a net profit of $2.38 million.

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At Home Group, Inc. operates home decor superstores. Its products include accent furniture, bar stools, bedding and bath products, beds and mattresses, candles, Christmas decoration, consumables, easter decorations, floor plants and trees, food preparation items, frames, garden decor, Halloween decorations, home organization, kitchenware, lamps, mirrors, patio, pet items, pillows and cushions, pottery, rugs and mats, sculptures, silk flowers, sofas, stands, storage, tables, vases, wall art, and window treatments. The company was founded in 1979 and is headquartered in Plano, TX.

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