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Fly News Breaks for December 4, 2019
LL, FND
Dec 4, 2019 | 08:06 EDT
Wedbush analyst Seth Basham says he thinks the temporary lifting of tariffs on luxury vinyl flooring tiles by the U.S. Trade Representative will boost earnings for Floor & Decor (FND) and Lumber Liquidators (LL). The analyst estimates ~$15M in refunds for tariffs paid by Floor & Decor and ~$16M for Lumber Liquidators on luxury vinyl flooring imported from China from the retroactive date through the announcement, a "very material" amount for Lumber Liquidators equating to 7% of its market cap. Basham expects the companies to capture incremental gross profit dollars as they are unlikely to pass all of this savings on to customers and vendors. He continues to rate Floor & Decor Outperform, with a Neutral rating on Lumber Liquidators.
News For FND;LL From the Last 2 Days
FND
Oct 26, 2020 | 08:24 EDT
Wells Fargo analyst Zachary Fadem raised the firm's price target on Floor & Decor to $90 from $85 and keeps an Overweight rating on the shares. The analyst notes that setup into fiscal year 2021 as good as any name in Hardlines, but recent gains and high multiple make for "inevitable" Q3 noise. With shares up 20% in the last 3 months, he sees balanced risk/reward into Q3 print, but a favorable setup into fiscal year 2021 featuring strong housing tailwinds, company-specific growth levers and consensus estimates that Fadem believes are too low.