Goldman Sachs downgrades Floor & Decor amid housing market pressure

Investing.com
01-30

Investing.com -- Goldman Sachs downgraded Floor&Decor Holdings (NYSE:FND) to "Sell" while maintaining a $79 price target, as it expects the housing market to remain under pressure in 2025 due to elevated mortgage rates and sluggish home turnover.

The brokerage noted that Floor&Decor’s sales remain closely tied to housing turnover, limiting near-term upside. Shares of FND have underperformed peers since Goldman downgraded the stock to "Neutral" in mid-2022, rising 42% compared to a 55% gain for the S&P 500. Goldman Sachs sees 23% downside from current levels, significantly more than the 3% average downside risk across its coverage.

While Goldman remains cautious on flooring, it sees opportunities in home furnishings, amid improved industry trends and product innovation. The firm upgraded RH (NYSE:RH) to "Neutral" from "Sell" with a $374 price target and raised its target for Neutral-rated Williams-Sonoma (NYSE:WSM) to $224.

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