Floor & Decor price target lowered to $122 from $133 at Citi

Citi analyst Steven Zaccone lowered the firm’s price target on Floor & Decor to $122 from $133 and keeps a Buy rating on the shares. The company reported “mixed” Q2 results as earnings was in-line on another gross margin beat, but same-store sales slightly missed and the second half outlook was lowered based on lingering existing home sales weakness, the analyst tells investors in a research note. The firm believes Floor & Decoris close to the demand trough as home prices stabilize, rates peak, and says the higher probability of a soft landing should drive a mean reversion for existing home sales.