Floor & Decor price target lowered to $103 from $118 at Piper Sandler

Piper Sandler analyst Peter Keith lowered the firm’s price target on Floor & Decor to $103 from $118 and keeps a Neutral rating on the shares. The firm notes that there is a lot to like about Floor & Decor’s long-term growth outlook, but at 57-turns next twelve months EPS, Piper has questioned if the market is pricing in too steep of a recovery for Floor & Decor EPS growth. Based on its analysis of the previous 4 flooring downturns and recoveries over the last 45 years – and how each of these cycles were impacted by interest rates and Existing Home Sales – the firm sees the current flooring recovery cycle as more muted versus past recoveries.