DA Davidson analyst Tom Forte lowered the firm’s price target on Lovesac to $64 from $97 but keeps a Buy rating on the shares. The company’s Q3 operating results exceeded expectations, but the management lowered its outlook for Q4 sales to high-single-digits to mid-teens growth from its prior one of 20% on an increasingly challenging macroeconomic environment, the analyst tells investors in a research note. Forte adjusts his price target with a "conservative" FY23 view for Lovesac, though he still sees a lot of "wiggle room" for the company’s opportunities to ramp promotions in the event of a weakening macroeconomic environment, increase marketing spending to take advantage of lower media rates, and make further investments to position the company for long-term growth.
Published first on TheFly
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