TD Cowen Maintains Hold Rating on Floor & Decor Holdings (FND) Stock

Floor & Decor Holdings, Inc. (NYSE:FND) is one of the 7 Best Stocks to Buy According to Abdiel Capital Advisors. On July 21, TD Cowen analyst Max Rakhlenko maintained a “Hold” rating on the company’s stock and set a price target of $80.00. The analyst’s rating is backed by factors that demonstrate a balanced risk-reward scenario for Floor & Decor Holdings, Inc. (NYSE:FND). Despite a marginal rise in the price objective, the recommendation remains neutral, with the potential benefits from anticipated rate cuts and market share opportunities being offset by uncertainties.

An overhead view of a website displaying the multiple options of flooring products available for purchase.

These uncertainties consist of the magnitude of the housing market rebound as well as the near-term visibility into comparable sales turnaround, added the firm’s analyst. Notably, while the flooring industry reflects some signs of improvement, the trends are generally soft, opines Rakhlenko. As per the analyst, while there remains speculation related to the potential acquisitions, the market’s reaction to such moves is uncertain, mainly considering Floor & Decor Holdings, Inc. (NYSE:FND)’s current focus on capital preservation.

Wasatch Global Investors, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:

“Another detractor on the long side was Floor & Decor Holdings, Inc. (NYSE:FND). The company is a specialty multi retailer of hard-surface flooring. Floor & Décor sources some of its supplies from China, and was likely down on concerns that increased tariffs under a Donald Trump presidency would raise costs for the business. While tariffs would be a headwind, it doesn’t change our thesis on the company. Floor & Decor has become a “category killer” among the big-box home centers. And because the company cuts out middlemen and buys in large quantities, it can offer its customers a wider selection of flooring at lower prices than most of its competitors. Floor & Decor’s expanding retail footprint, strong cash flows and solid balance sheet also provide the company with what we consider a built-in engine for self-funded growth.”

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Disclosure: None. This article is originally published at Insider Monkey.