Lovesac may be a ‘stealth’ play on improving housing, says DA Davidson

DA Davidson keeps a Buy rating and $32 price target on Lovesac after its better than expected Q2 earnings, further noting that while innovation remains a key part of the story and was on full display this quarter with several new products driving sales, the company may also be a “stealth way” to play what should be a better housing market driven by falling rates and mortgages. While Lovesac business is not yet seeing much in the way of housing related green-shoots, even without that, trends have already improved due to new product innovation and more effective marketing, the analyst tells investors in a research note.