Skip to main content

Market Overview

At Home Group's Risk/Reward Is Balanced, Says Morgan Stanley

At Home Group's Risk/Reward Is Balanced, Says Morgan Stanley

Morgan Stanley’s Simeon Gutman believes At Home Group Inc (NYSE: HOME) offers “an intriguing combination of growth and value, with unmatched 20 percent square footage and potential for 25 percent annual EPS growth.”

Gutman initiated coverage at an Equal-Weight rating and price target of $17.

Value Proposition

The analyst mentioned that the company offers a “unique blend” of value-focused retail and physical growth with a balanced risk/reward and upside potential of 55 percent.

At Home currently trades at a 3–4x discount to high growth retailers, which the analyst believes is warranted given that the business was recently taken public and is still high leveraged and immature.

Gutman believes the company has the potential to deliver top-line growth in the low-20s percent and bottom line of 20 percent growth.

Related Link: At Home Group Shares Sell Off Following IPO; Open At $16.25

“A near-term slip could send HOME's multiple to 5x–6x, which is more in line with our covered home furnishing retailers. This balanced upside/downside keeps us on the sidelines. HOME fills a unique niche in the home furnishings segment,” Gutman stated.

Unmatched Concept

The analyst also pointed out that At Home’s merchandising is sharp, and the depth and breadth of its product is unparalleled in brick and mortar retail.

It carries 50,000 SKUs in-store, and Gutman noted such a concept did not exist in the marketplace and “serves a value-seeking consumer, one of the best places to be in retail.”

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for HOME

Mar 2021Morgan StanleyMaintainsEqual-Weight
Mar 2021Wells FargoMaintainsEqual-Weight
Jan 2021Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for HOME
View the Latest Analyst Ratings


Related Articles (HOME)

View Comments and Join the Discussion!

Posted-In: Morgan Stanley Simeon GutmanAnalyst Color Initiation Analyst Ratings Best of Benzinga

Latest Ratings

GDWolfe ResearchDowngrades
QRTEAB of A SecuritiesInitiates Coverage On
ABB of A SecuritiesDowngrades42.0
VCTRB of A SecuritiesUpgrades32.0
BSIGB of A SecuritiesUpgrades27.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at