LOVE - Lovesac defended by analysts after earnings sell-off
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
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Lovesac defended by analysts after earnings sell-off