Ethan Allen's Operating Margin Sustainable Despite Challenging Sales Environment: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Cristina Fernández has reiterated a Market Perform rating on Ethan Allen Interiors Inc. (NYSE:ETD), raising the price target to $33 from $28. Despite a challenging sales environment and a Q4 sales decline of 18.4%, the company managed to deliver a better operating margin of 16.3%. The company also announced a special dividend of $0.50 per share. The analyst projects a sales decline of 6.8% in FY24 to $737 million, but forecasts an operating margin of 14.8%.
August 04, 2023 | 2:13 pm
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Ethan Allen Interiors Inc. (ETD) has been given a Market Perform rating by Telsey Advisory Group, with a raised price target of $33. Despite a sales decline, the company has shown a strong operating margin and announced a special dividend.
The analyst's positive rating and increased price target, along with the company's strong operating margin and special dividend announcement, are likely to have a positive impact on the stock in the short term. However, the projected sales decline could moderate this positive impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100