Wells Fargo analyst Zachary Fadem maintained a Buy rating on Floor & Decor Holdings Inc (NYSE: FND) today and set a price target of $35. The company’s shares closed yesterday at $27, close to its 52-week low of $25.48.
Fadem commented:
“We believe investors are highly focused on the FY19 outlook, with the bear case predicated on a slowing cycle, mix headwinds (i.e. LVT cannibalizing higher-margin installation materials), and competition as HD ups its game in flooring. With deepening negative sentiment unlikely to be alleviated in a single print, we are lowering our PT to $35 (16.5x CY19 EBITDA). However, we remain at Outperform with shares –21% in the past month (vs. -6% SPX) and now trading at a –35% discount to high-growth retail peers. At these levels, we believe shares have overshot to the downside for a name widely viewed “the best growth story in retail” just 1 year ago. We believe an inline Q3 presents the first step towards relief, recent storms could prove a tailwind (Ex: 10-12), and any visibility on FY19 to refute (or numerically validate) the bear case would be viewed as a positive catalyst.”
According to TipRanks.com, Fadem is a 4-star analyst with an average return of 7.4% and a 60.0% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Advance Auto Parts, and Michaels Companies.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Floor & Decor Holdings Inc with a $43.40 average price target.
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Based on Floor & Decor Holdings Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $39.85 million. In comparison, last year the company had a net profit of $23.26 million.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock.
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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.
