Lovesac price target lowered to $19 from $28 at Roth Capital

Roth Capital lowered the firm’s price target on Lovesac (LOVE) to $19 from $28 but keeps a Buy rating on the shares after its Q3 earnings miss. The company saw a soft patch in September/October that firmed in November and into the key Holiday period, with management confirming positive omni-comps Q4-to-date, though despite this improvement, the management lowered Q4 sales and adjusted EBITDA guidance, citing a tentative consumer, tougher comps, and heavier promotions pressuring margins, the analyst tells investors in a research note. Patient investors should focus on Lovesac’s cheap valuation at 3.5-times expected EBITDA, upcoming product launches, margin improvement into the second half of FY27, and sound balance sheet, the firm added.