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Lovesac shares target cut to $35, retains buy rating

Published 12/12/2024, 21:36
LOVE
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Looking forward, the analyst expressed optimism about Lovesac's prospects. An improving housing market coupled with the anticipation of new product launches is expected to help the company's growth pick up pace. The revised price target of $35 is based on a 10x multiplier of the firm's estimated EBITDA for the year 2026. InvestingPro subscribers have access to 13 additional key insights about LOVE, including detailed valuation metrics and growth indicators.

Get the complete financial picture with InvestingPro's comprehensive research report, available for over 1,400 US stocks. InvestingPro subscribers have access to 13 additional key insights about LOVE, including detailed valuation metrics and growth indicators. Get the complete financial picture with InvestingPro's comprehensive research report, available for over 1,400 US stocks.

The analyst noted that despite the underwhelming quarterly results, Lovesac experienced double-digit growth in customer quotes. The report highlighted that conversion times have increased, suggesting consumers might be delaying significant discretionary purchases until the following year due to current holiday spending. The company maintains a healthy financial position with a current ratio of 1.69, indicating strong ability to meet short-term obligations.

Looking forward, the analyst expressed optimism about Lovesac's prospects. An improving housing market coupled with the anticipation of new product launches is expected to help the company's growth pick up pace. The revised price target of $35 is based on a 10x multiplier of the firm's estimated EBITDA for the year 2026.

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