Floor & Decor downgraded to Neutral from Buy at Citi

Citi downgraded Floor & Decor to Neutral from Buy with a price target of $90, down from $122. The analyst believes it is prudent to shift to a Neutral rating given the threat of higher rates for longer to existing home sales and home improvement spending. The firm sees a risk that the company’s second half of 2023 misses Street expectations and 2024 will come in well below the Street. Despite the downside risk to earnings, Floor & Decor remains a “heavily macro-sensitive stock” with upside potential if/when rates peak, the analyst tells investors in a research note.