Morgan Stanley Cuts Price Target on At Home Group (HOME) Following 2Q EPS Beat

September 14, 2016 11:48 AM EDT
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Price: $14.18 +0.21%

Rating Summary:
    4 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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Morgan Stanley maintained an Equalweight rating on At Home Group (NYSE: HOME), and cut the price target to $16.00 (from $17.00), following the company's 2Q earnings report. HOME reported an EPS of $0.13, above the consensus estimate of $0.11. The lower price target reflects recent lower re-ratings across retail.

Analyst Simeon Gutman commented, "HOME's results in their first quarter as a public company were better than expected. EPS of $0.13 were above consensus of $0.11, driven by better comps (+0.9% vs. +0.5%) and gross margin (32.9% vs. 32.5%). While GM declined 90 bps, core merch margins were flat YoY suggesting HOME did not succumb to heightened promotions to drive top-line growth, something we are seeing across the home furnishings space. SG&A delevered 230 bps and grew ~35% YoY due to a 25% increase in store count and marketing investments. Altogether, adj'd EBITDA grew ~2% YoY to $32.2 million."

For an analyst ratings summary and ratings history on At Home Group click here. For more ratings news on At Home Group click here.

Shares of At Home Group closed at $12.45 yesterday.



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