- Two firms with Buy rating out on Lovesac Company (LOVE -7.6%) boost their price target on the retailer following the Q4 earnings report.
- Craig-Hallum (PT boost to $85): "Lovesac continues to demonstrate that it is a best-in-class retailer with patented, world-class products. This morning, the company reported significantly better results, with better than expected revenue and substantially better than expected profitability. Our thesis remains unchanged... With 50%+ gross margins and strong double-digit growth even through the worst of the pandemic, the company is positioned for strong double-digit EBITDA margins over time."
- BTIG analyst Camilo Lyon (PT boost to $78): "Our view is that the company is exhibiting a high degree of conservatism with respect to its revenue growth outlook in F22. FQ1 revenue is guided to +38% with two weeks to go in the quarter thus implying a steep deceleration in the remaining quarters despite signs pointing to the contrary given still low single-digit brand awareness. What's more, the company has embedded investments into its framework without the expected revenue upside typically associated with those investments... LOVE enters F22 with continued brand strength and momentum, and necessary investments that were postponed last year should drive immediate and long term benefits to the company."
- Lovesac is lower on the day after the Q4 earnings beat was overshadowed by the guidance update.