Lovesac pre-announcement shows stabilizing business, says Roth MKM

Roth MKM analyst Matt Koranda keeps a Buy rating and $37 price target on Lovesac after the company’s better than expected Q2 revenue pre-announcement along with the announced delay in its Q2 report so as to refile past financial statements. The pre-announcement shows a stabilizing business that is inflecting on gross margins, and while the delay may disappoint some investors, the healthy underlying fundamentals in the business should still carry more weight, the analyst tells investors in a research note.