UPDATE: Piper Jaffray Maintains Overweight and $21 Price Target on Tile Shop

In a report published Monday, Piper Jaffray maintained its Overweight and $21 price target on Tile Shop

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.