Floor & Decor Holdings: Telsey downgrades to "market perform"
08/04/2019 13:41
** Brokerage Telsey Advisory Group downgrades Floor & Decor
Holdings Inc FND.N to "market perform" from "outperform" on
valuation and softer housing trends
** Telsey see FND as a disruptor and market share gainer in
the flooring space, but slowing housing market limits FND's
sales, earnings and valuation upside from current level
** FND currently trades at 38x its 12 month forward earnings
compared to its peers Lumber Liquidator Holdings' LL.N 19x,
and Tile Shop Holdings' TTS.O 21.8x
** Analyst Joseph Feldman also notes a decline in home
sales, a key driver of flooring sales, in the past few months
** Also says other indicators of housing market such as
private fixed residential investment, value of construction put
in place and consumer confidence have deteriorated in past few
months
** 12 of 20 brokerages rate FND "buy" or higher, 7 "hold"
and 1 "sell"; median PT is $43
** Up to Friday's close, FND had gained 71.4% this year,
making it the best performer in the Dow Jones U.S Consumer
service index .DJUSCY , which was up 16.2% YTD
(Reporting by Soundarya J in Bengaluru)
((Reuters Messaging:
soundarya.j.thomsonreuters.com@reuters.net))