Citi maintains Neutral on Floor & Decor stock with $111 target

Published 10/02/2025, 11:36
Citi maintains Neutral on Floor & Decor stock with $111 target

On Monday, Citi analyst Steven Zaccone maintained a Neutral rating on Floor & Decor Holdings, Inc. (NYSE:FND) with an unchanged price target of $111.00. Zaccone opened a positive catalyst watch trading call ahead of the company’s fourth-quarter earnings report, which is scheduled for February 20, after the market closes.

Zaccone cited several factors contributing to a positive outlook for the company’s earnings: stronger-than-expected fourth-quarter same-store sales (SSS) and earnings per share (EPS), the potential for 2025 guidance to be perceived as beatable, recent stabilization in mortgage rates, the uncertain impact of tariffs that could nonetheless boost ticket growth for 2025, and the stock’s underperformance compared to the market and its peers. According to InvestingPro, the company maintains a FAIR financial health score of 2.31, with notably high stock volatility (Beta: 1.83).

Despite the positive catalyst watch, Zaccone expressed concerns that Floor & Decor’s multi-year recovery pace may not sufficiently justify the company’s current stock valuation, which is why the Neutral rating and price target remain unchanged. The analyst emphasized that macroeconomic concerns have been largely factored into the stock’s price, with mortgage rates showing signs of stability.

Floor & Decor Holdings, Inc. is anticipated to reveal its fourth-quarter performance soon, and while certain factors suggest a positive outcome, Citi’s stance reflects caution due to valuation concerns. The company’s stock has lagged behind the broader market, home improvement peers, and high unit growth retailers, both in the near term and medium term. The upcoming earnings report will provide investors with a clearer picture of the company’s financial health and potential growth trajectory.

In other recent news, Floor & Decor Holdings has announced significant developments. The company has appointed Bradley Paulsen as its new President, effective April 28, 2025. Paulsen, who boasts an impressive background in retail and commercial sales, will report directly to CEO Tom Taylor. His experience includes leadership roles at Rentokil Initial (LON:RTO) plc’s North American division, Rexel (EPA:RXL) USA, HD Supply, and The Home Depot (NYSE:HD).

Additionally, a settlement hearing for the pending derivative litigation involving Floor & Decor has been rescheduled to December 23, 2024. This litigation, known as Lincolnshire Police Pension Fund v. Taylor, et al., involves claims against certain officers, directors, and stockholders of the company. Stockholders have until December 18, 2024, to file objections to the proposed settlement.

These are the latest developments in the company’s recent activities, reflecting changes in executive leadership and ongoing legal proceedings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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