Piper Sandler Downgrades Floor & Decor to Neutral as Home Sales Trend Lower
2022.07.29 23:10
Piper Sandler Downgrades Floor & Decor to Neutral as Home Sales Trend Lower – Budrigannews.com
A Piper Sandler analyst downgraded Floor & Decor Holdings, Inc. (NYSE:FND) from Overweight to Neutral Friday as Existing Home Sales (EHS) appear to be trending down -20% compared to this same time last year. The analyst is also concerned that homeowners may begin deferring flooring purchases given the big-ticket nature of the product.
However, even as EHS trends downward, Piper Sandler continues to believe in FND’s long term growth potential, and expects the company to take significant share over the next. Nevertheless, Piper Sandler has lowered its 2022 and 2023 EPS estimates to street-low levels and cut FND’s price target to $75.00 (from $103.00) to match the forecast.
FND remains a “well-run category killer” in the analyst’s words. He expects the company to remain focused on its growth strategy and take notable market share as it did during the last housing downturn.
Shares of Floor & Decor Holdings, Inc. closed at $79.07 yesterday.
