Home improvement firms' recovery to be fueled by LL Flooring's store closures, Mizuho says

Nippon Building Fund

17/09/2024 13:48

** Brokerage Mizuho views ongoing store closures at bankrupt
home improvement firm LL Flooring as an added medium- to
longer-term positive for Home Depot  HD.N , Lowe's Cos  LOW.N ,
and Floor & Decor  FND.N 
    ** The American flooring company is closing half of its 400
store base after filing for the Chapter 11 bankruptcy process
last month
    ** We view this factor, in addition to pending interest rate
cuts, as another modest boost to the broader home improvement
category's delayed, yet impending recovery - Mizuho analyst
David Bellinger
    ** FND to see the most favorable impact to its core flooring
and installation materials business from LL Flooring's store
shutdown, Mizuho says
    ** Brokerage reiterates PT of $400 for HD, $280 for LOW, and
$98 for FND
    ** So far, HD up ~10%, LOW up 15% and FND up 4.5% YTD

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))