Floor & Decor downgraded to Hold from Buy at Jefferies

Jefferies analyst Jonathan Matuszewski downgraded Floor & Decor to Hold from Buy with a price target of $108, down from $110. The stock’s valuation is “harder to justify” following the outperformance year-to-date, the analyst tells investors in a research note. In addition, the firm sees uncertainty in the second half of 2023. A guidance cut “feels more likely than not” given the delayed impact of higher 30-year mortgage rates, uncertainty regarding the resumption of student loan obligations, and improving inventory at independents, the analyst tells investors in a research note.