William Blair analyst Phillip Blee has reiterated their bullish stance on FND stock, giving a Buy rating on October 24.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Phillip Blee has given his Buy rating due to a combination of factors that suggest Floor & Decor Holdings is well-positioned for future growth despite current challenges. The company has managed to expand its EBIT margins over the past year, even while facing a slight decline in comparable sales, which is notable given its fixed-cost-heavy store model. This margin expansion is supported by improvements in product margins and a more efficient operating expense structure, which are expected to contribute to healthy margins in a more favorable sales environment.
Furthermore, Blee is optimistic about the company’s potential for accelerated growth as it focuses on new opportunities such as outdoor products, large-format slabs, and kitchen cabinets, as well as international expansion. The management’s efforts to address concerns regarding the performance of new store openings and the potential for cost savings in store buildouts are also seen as positive steps. Overall, Blee believes that any recovery in the housing market, particularly in key regions like Texas and Florida, could significantly boost the company’s comparable sales and earnings potential.
In another report released on October 24, Bank of America Securities also reiterated a Buy rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FND in relation to earlier this year.