Floor & Decor offers a cautious view from Morgan Stanley due to macro risks

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Morgan Stanley analyzed the ups and downs of Floor & Decor Holdings (NYSE:FND) analyst’s last day presentation week.

Floor & Decor (FND) has been called one of the best growth stories in the company’s coverage, with significant expansion potential in terms of stores, total addressable market and profit margins. EBIT profits. Analyst Simeon Gutman and team argue that the FND should continue to benefit from secular trends such as older housing inventories, affluent and younger homeowners, as well as a long-term shift to hard-surface flooring. .

However, the company retains a Equivalent Weight rating on the stock due to a number of prominent macro risks.

“The risk/reward bias is wide but balanced with 45% / 50% gain / loss on our $145 / $50 gain and ~21% on our $120 PT FND is a growth stock with high multiples and sells discretionary products that are typically sensitive to interest rates and housing There are some golden signs on housing; mortgage rates have risen (mortgage fixed rates) 30 years is now at ~4.3 % vs ~3.3% at the end of 21) and existing home sales have declined for 5 consecutive months. outside.”

Learn about Flooring & Decoration (FND) Analyst day presentation.

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