Guggenheim Reiterates Buy on At Home Group (HOME) Following 3Q

Guggenheim reiterated a Buy rating and $17.00 price target on At Home Group (NYSE: HOME) following the company's 3Q earnings report and guidance. 4Q comp guidance of 3.0-4.7% was surprisingly robust, given the difficulty of the year-ago compare and the fact that 60% of the quarter is still ahead of us. Guidance is underpinned by strength in the “important” month of Nov. Because HOME is used more for “decorating” than “gift giving” more than 60% of sales occur in the 1H of the 4Q.

Analyst John Heinbockel commented, "Given modest growth in demand and an intense competitive climate, market share gains are critical to achieving growth in the home furnishings sector. Very few—primarily industry disruptors such as Wayfair (W, NC, $37.02) and RH (BUY, $37.69)—are achieving these gains. HOME is as well. We believe that strong 3Q results, implied guidance for an even more robust 4Q, and ongoing refinement of the model should bolster investor confidence in 18-20% secular sales and EBITDA growth. With the shares trading at only 8.4x our 2017E EBITDA, we expect multiple expansion to drive near-term upside."

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 $14.13 yesterday.

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