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Investing.com-- Stifel analysts upgraded Floor & Decor Holdings Inc (NYSE:FND) to "Buy" from "Hold" and raised their price target on the stock, following better-than-expected fourth-quarter results that showcased stronger profitability and resilient sales.
FND reported fourth-quarter EBITDA of $119.8 million, surpassing Stifel’s $99.5 million estimate, with EPS at $0.44, double the expected $0.22. Comparable sales declined 0.8%, outperforming the projected 4% drop, partly aided by hurricane-related benefits, analysts said.
Analysts raised their price target to $110 from $100.
The West region’s positive comparable sales reflected a recovery from earlier headwinds, signaling a potential upswing in overall performance, according to Stifel.
Stifel highlighted Floor & Decor’s ability to navigate challenging market conditions, including tariff risks and labor inflation, while maintaining investments in growth.
The company added 60 new stores in 2024, a 30%+ increase while generating $412 million in free cash flow.
For FY25, Stifel projects an EBITDA of $544 million, up from $535 million, with a modest 0.3% rise in comparable revenue.
Analysts remain cautious about a slow home improvement recovery but believe FND’s strong market position and expansion strategy will drive resilience and long-term growth.
Stifel believes Floor & Decor’s unmatched infrastructure and market share initiatives position it for transformative growth in the years ahead.