Lovesac price target lowered to $24 from $54 at DA Davidson

DA Davidson analyst Tom Forte lowered the firm’s price target on Lovesac to $24 from $54 but keeps a Buy rating on the shares after its Q2 earnings beat but below-consensus FY24 guidance. Given the challenging home market expected to persist into 2024, the firm has made two changes for Lovesac estimates to be more conservative, the analyst tells investors in a research note, adding that DA Davidson has lowered its FY25 sales growth projection to 5.0% from 10.0% and reduced its adjusted EBITDA projection to $62M from $86M.