UPDATE: Credit Suisse Initiates Coverage on Tile Shop Holdings with Outperform Rating, $26 PT on Retail Growth Story

In a report published Monday, Credit Suisse analyst Seth Sigman initiated coverage on Tile Shop Holdings

with an Outperform rating and $26.00 price target. In the report, Sigman noted, “We view TTS as a rare early-stage retail growth story that is poised to take share in the fragmented tile market and benefit from improving home remodel trends. The TTS investment story centers on the opportunity to more than double the store base over the next few years. What gives us confidence in that story is the value TTS provides consumers through its high service levels, industry-leading assortment, and attractive pricing. That has proven to be a winning recipe in retailing, as it helps protect from e-commerce, allows TTS to effectively compete vs. big box competitors, and supports higher margins (as can be seen in TTS's ~28% EBITDA margins).” Tile Shop Holdings closed on Friday at $20.63.