In a report published Monday, Piper Jaffray maintained its Overweight and $21 price target on Tile Shop TTS
Piper Jaffray reported that, “We are maintaining our Overweight rating and $21 price target following a well-attended
meeting with CFO Tim Clayton and SVP – Retail Carl Randazzo at their Plymouth, MN
headquarters. Speaking with management and following it with a store tour, reaffirms
our belief that TTS has an extremely powerful business model that can be scaled up
significantly. Furthermore, all of our industry work suggests a strengthening industry
backdrop in early 2013 and the development of a flooring super-cycle, particularly for
hard surface flooring such as tile and hardwood. All in, we remain fully confident that
strong top line trends at Tile Shop remain intact and that near-term expense pressure
will not be a hang-up on share appreciation. With a company this early in its growth
cycle, we encourage investors to focus on the top line trends the opportunities it provides
for operating leverage in the out years (2014 & 2015).”
Shares of Tile Shop closed at $17.80 on Friday.
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