Gold prices bounce off 3-week lows; demand likely longer term
Investing.com - TD Cowen raised its price target on Floor & Decor Holdings, Inc. (NYSE:FND) to $80.00 from $78.00 on Monday, while maintaining a Hold rating on the stock.
The firm cited increased investor optimism around the flooring retailer, driven by expectations that near-term interest rate cuts will support an eventual housing market recovery, potentially benefiting Floor & Decor’s business.
TD Cowen also noted investor expectations for second-half comparable sales upside from higher ticket prices as the company passes through tariffs with only modest elasticity in customer demand.
The long-term market share opportunity was highlighted as another positive factor, with TD Cowen suggesting Floor & Decor could benefit as competitors struggle to operate in the current tariff environment, allowing the company’s price spreads to widen.
Despite the price target increase, TD Cowen maintained its Hold rating, citing a balanced risk-reward profile given "lower conviction on the magnitude of the housing rebound and lower visibility into the comps turnaround in the near term" relative to Floor & Decor’s 34x multiple, which represents only a modest discount to historical levels.
In other recent news, Floor & Decor Holdings Inc. reported its first-quarter 2025 earnings, meeting analyst expectations with an earnings per share (EPS) of $0.45 and revenue of $1.161 billion, marking a 5.8% increase year-over-year. Despite the positive earnings report, several analyst firms have adjusted their price targets for the company. Loop Capital reduced its price target to $75 from $95, maintaining a Hold rating, citing the company’s revised full-year guidance and the impact of sluggish US existing home sales. Stifel also lowered its price target to $92 from $110, while keeping a Buy rating, noting that the company’s EPS exceeded expectations due to strong gross margin performance.
Telsey Advisory Group adjusted its price target to $100 from $115, maintaining an Outperform rating, and highlighted Floor & Decor’s growth potential with plans to expand to at least 500 stores. The company’s guidance for fiscal year 2025 was revised downward, with comparable revenue expected to decline by 200 basis points. Analysts at Stifel expressed confidence in Floor & Decor’s market position, citing its significant scale and diversified supply chain as advantages.
Floor & Decor’s gross margin improved by 100 basis points to 43.8%, and the company continues to expand its product offerings and store footprint. The company’s efforts to reduce reliance on Chinese imports were noted positively amid ongoing global trade tensions. Analysts have pointed out that the current market downturn could benefit Floor & Decor by leading to increased store closures among smaller competitors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.