Floor & Decor Holdings Inc Receives a Hold from Wells Fargo

By Austin Angelo

Wells Fargo analyst Zachary Fadem reiterated a Hold rating on Floor & Decor Holdings Inc (NYSE: FND) today. The company’s shares closed yesterday at $38.14, close to its 52-week high of $39.50.

Fadem wrote:

“We are initiating coverage of FND with a Market Perform rating and a $40 price target. FND is a specialty retailer of hard surface flooring with a differentiated business model, high-growth characteristics and competitive advantages within the attractive home improvement sub-sector. We model 3-year CAGRs for sales, net income and EBITDA of 22%/29%/32% reflecting ongoing unit growth, mid-single digit comps, and margin benefits from growing scale, improving product mix, operating leverage and supply chain reinvestments. While we believe FND represents one of the best growth stories in all of retail and should be viewed as a core holding for long term small and midcap growth investors, we see near term upside as limited with shares trading at 29x our NTM EV/EBITDA or +82% above its recent IPO price (and +19% since 4/27 vs. +1.1% SPX).”

According to TipRanks.com, Fadem is a 2-star analyst with an average return of 2.5% and a 58.3% success rate. Fadem covers the Services sector, focusing on stocks such as Performance Food Group, United Natural Foods, and Wal-Mart Stores Inc.

Floor & Decor Holdings Inc has an analyst consensus of Moderate Buy, with a price target consensus of $43.

The company has a one year high of $39.50 and a one year low of $29.37. Currently, Floor & Decor Holdings Inc has an average volume of 784.1K.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. The firm provides wood, stone, and flooring products. Its products includes vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by Vincent George West in 2000 and is headquartered in Smyrna, GA