UPDATE: Piper Jaffray Maintains Overweight on Tile Shop, Confident in Business Model
In a report published Monday, Piper Jaffray maintained its Overweight rating and $21 price target on Tile Shop (NYSE: TTS)
Piper Jaffray reported that, “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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