Floor & Decor added to ‘Tactical Underperform’ list at Evercore ISI

Evercore ISI analyst Greg Melich is adding Floor & Decor (FND) to the firm’s “Tactical Underperform” list into Q4 earnings next week as the analyst believes the stock’s run to over $100 is “a product of the market projecting a sharper recovery than we expect in FND’s business through 2024.” A delayed flow through at a later rate than Home Depot (HD), Lowe’s (LOW) and Sherwin-Williams (SHW) in terms of seeing benefits of the slower, steady recovery in need-based home improvement suggests a guidedown to flat on down EPS to near $2 on February 22 “might not be enough for the stock,” which “seems to discount a recovery to $3 in EPS by 2025,” the analyst tells investors. Evercore has an In Line rating and $110 price target on Floor & Decor shares.