Mizuho Starts Floor & Decor Holdings, Inc. (FND) at Neutral, 'Laying the Groundwork for a Rebound, But Too Expensive for Us'

Mizuho analyst David Bellinger initiates coverage on Floor & Decor Holdings, Inc. (NYSE: FND) with a Neutral rating, PT $115.00.

The analyst comments "We launch coverage of Floor & Decor with a Neutral rating and $115 PT. We are attracted to the market share-grabbing ability of the still-young FND model and its growing store base. Near-term category demand has stalled, in our view, after a protracted stretch of subpar existing home sales. We expect further top-line contraction throughout 2024, pressuring earnings power to $2.00 (vs. recent high of $2.76). All that aside, trends should rebound as macro pressures gradually fade albeit at a later-cycle, delayed pace vs. other parts of home improvement. We see limited upside with shares trading near peaks at >45x FY25E earnings, and await a better entry point."

For an analyst ratings summary and ratings history on Floor & Decor Holdings, Inc. click here. For more ratings news on Floor & Decor Holdings, Inc. click here.

Shares of Floor & Decor Holdings, Inc. closed at $120.69 yesterday.

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