Floor & Decor downgraded to Neutral from Buy at UBS

UBS downgraded Floor & Decor to Neutral from Buy with an unchanged price target of $135. The analyst cites valuation for the downgrade with the shares within 9% of the price target. The firm remains “enthusiastic” about Floor & Decor’s long-term outlook and believes the retailer will eventually operate 500 stores versus 221 today, enabling it to gain significant share of the flooring and decor markets. This should create more shareholder value, but at least some of this opportunity has already been recognized in the shares, says UBS. It believes the case for further multiple expansion from here is less compelling.