Floor & Decor stock to remain range-bound ahead of Q2 results, UBS says

Published 22/07/2025, 15:42
Floor & Decor stock to remain range-bound ahead of Q2 results, UBS says

Investing.com - UBS maintained its Neutral rating and $80.00 price target on Floor & Decor Holdings, Inc. (NYSE:FND) ahead of the company’s second-quarter earnings report.

The research firm expects the upcoming earnings release to be a "low impact event" for the flooring retailer’s stock price, noting that market expectations are already subdued. UBS believes Floor & Decor is managing well, particularly regarding tariff challenges.

The retailer’s second-quarter results will move the company one step closer to an eventual recovery, according to UBS. The firm also highlighted that FND stock should eventually show significant upside leverage when the industry cycle improves.

Despite these positive factors, UBS pointed to ongoing challenges including a flooring category that is "bouncing along the bottom" and the likelihood that analyst estimates won’t change significantly following the earnings report.

UBS also expressed concern about Floor & Decor’s current valuation at approximately 38 times next-twelve-months earnings per share, describing it as "a full multiple" that could limit near-term stock appreciation until industry conditions improve.

In other recent news, Floor & Decor Holdings, Inc. has been the subject of various analyst updates following its earnings and guidance announcements. Stifel analysts noted that the company’s first-quarter earnings for 2025 exceeded expectations due to strong gross margin performance, although revenue matched forecasts. However, the company’s guidance for fiscal year 2025 was revised downward by 200 basis points, reflecting increased uncertainty in the market. Loop Capital also adjusted its outlook, reducing the price target to $75 from $95, following the company’s first-quarter results and a downward revision in full-year guidance.

Telsey Advisory Group lowered its 12-month price target from $115 to $100, maintaining an Outperform rating, and highlighted Floor & Decor’s long-term expansion plans and growth drivers. Meanwhile, TD Cowen raised its price target to $80 from $78, citing increased investor optimism due to potential interest rate cuts and a recovery in the housing market. Citi maintained a Neutral rating with a $74 price target, adjusting its estimates due to weaker data trends and ongoing pressure in the housing market. These developments indicate a mixed but cautiously optimistic outlook from analysts regarding Floor & Decor’s future performance.

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