As previously reported, Wells Fargo analyst Zachary Fadem downgraded At Home Group to Market Perform from Outperform, with a $9 price target. Despite well understood challenges around weather, category softness and spotty execution, the analyst notes that At Home's Q1/full year update was "disappointing," as 2020 started soft, and margin pressures associated with elevated inventory drove a 30% reduction in the full year outlook. Incremental tariff concern also reduces visibility as the company does not expect to further increase prices at the 25% tariff level, he adds. While Fadem believes Thursday's selling is "clearly overdone," he sees few incremental buyers amid substantial category headwinds and uncertainty around next year's outlook.