What's In The Cards For Floor & Decor In Q3? Analyst Sees Pressured Operating Margins Amid Weak Housing Market
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Joseph Feldman has reiterated the Market Perform rating on Floor & Decor Holdings, Inc. (NYSE:FND), but lowered the price target to $90 from $105. Feldman expects 3Q23 sales to increase 3% YoY to $1.1 billion, but anticipates a contraction in operating margin due to inflation and higher store operating expenses. The weak housing market and the lapping of pandemic-related gains are expected to put pressure on Floor & Decor's business.
October 25, 2023 | 7:46 pm
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NEGATIVE IMPACT
Floor & Decor's stock price may be negatively impacted due to the lowered price target and the anticipated contraction in operating margin. The weak housing market and higher operating expenses are expected to put pressure on the company's business.
The analyst's lowered price target and the anticipated contraction in operating margin due to inflation and higher store operating expenses are negative indicators for the company's stock price. Additionally, the weak housing market is expected to put pressure on Floor & Decor's business, which could further negatively impact the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100