TD Cowen analyst Max Rakhlenko maintained a Hold rating on Floor & Decor Holdings today and set a price target of $77.00.
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Max Rakhlenko has given his Hold rating due to a combination of factors impacting Floor & Decor Holdings. The company’s third-quarter performance exceeded expectations, yet there is caution surrounding the fourth quarter due to a slower start and challenging comparisons. While tariffs are expected to begin affecting the financials in the fourth quarter, Floor & Decor is anticipated to manage these through modest price increases, minimizing risks to gross margins.
Despite the positive product margin growth driven by supply chain efficiencies and operational improvements, there are concerns about future sales performance. The company faces variability in comparable store sales across different regions, with some areas showing strength while others lag. Additionally, while the store opening plans for fiscal year 2026 appear stable, there is limited visibility for significant growth in 2027, as management needs to see a consistent improvement in comparable sales before expanding further. These mixed signals contribute to the Hold rating as the company navigates these challenges.
According to TipRanks, Rakhlenko is a 4-star analyst with an average return of 9.0% and a 60.22% success rate. Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Floor & Decor Holdings, Boot Barn, and Planet Fitness.
In another report released on October 27, Evercore ISI also maintained a Hold rating on the stock with a $75.00 price target.