TD Cowen starts ‘priced for perfection’ Floor & Decor with a Hold

As previously reported, TD Cowen initiated coverage of Floor & Decor with a Hold rating and $125 price target. While arguing that Floor & Decor’s “compelling moats” position the company for long-term market share growth, the firm says the current valuation “appears full with shares priced for perfection,” which it sees creating a more challenging near-term setup. The firm, which expects a more modest normalized sales outlook on lower store growth and comps, along with a tougher path to driving outsized margins, thinks 2024 should be the floor, but advises waiting for a better risk/reward.