In a report released today, Max Rakhlenko from TD Cowen maintained a Hold rating on Floor & Decor Holdings, with a price target of $80.00.
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Max Rakhlenko has given his Hold rating due to a combination of factors affecting Floor & Decor Holdings. The company has been performing well despite challenging conditions, but recent trends suggest a more cautious outlook. The second quarter showed slightly better-than-expected comparable sales, but a decline in July has led to a reduction in the full-year guidance. This adjustment reflects a more balanced risk-reward scenario for the stock.
Additionally, while Floor & Decor is well-positioned in the tariff environment, competitive pressures are increasing, particularly from peers focusing on price points where Floor & Decor has historically been less competitive. The company’s market share in the flooring sector has reached an all-time high, yet the growth in store openings is expected to slow, impacting future revenue projections. These factors contribute to a Hold rating as the potential for upside is tempered by the current market dynamics and competitive landscape.
In another report released on August 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $85.00 price target.