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The Upside Potential Of Has Wilted, Analyst Says

The Upside Potential Of Has Wilted, Analyst Says
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1-800-Flowers.Com Inc (NASDAQ: FLWS) is scheduled to report earnings Jan. 30.

The Analyst

Northcoast Research's Kara Szafraniec downgraded from Buy to Neutral with a $12 price target. 

The Thesis

Northcoast is downgrading stock as its price nears the firm's $12 price target, Szafraniec said. The risk-reward for 1-800-Flowers.Com Inc is balanced, but the analyst said she still likes the stock because of its minimal brick-and-mortar presence, dominant market share position in the floral category and focus on everyday gifting occasions.

The floral company is going to benefit from the lower corporate tax rate, the analyst said. Northcoast projects the tax cut will provide a 9-cent-per-share benefit in fiscal 2019, but Northcoast is not including the benefit into its model due to uncertainty about the full impact of the law, Szafraniec said. The stock price recently appreciated on news of the tax cut, which has largely been priced in, she said. 

The analyst doesn't see any short-term catalysts that could push the stock higher and names weak holiday performance, consumer spending patterns and changes in the competitive landscape as potential risks.

The Price Action

The stock is trading 3.52 percent lower Tuesday afternoon at $10.95. 1. The company is trading around 42 percent higher than its August lows. 

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Report: The Retailers Most Dependent On Holiday Sales 

Latest Ratings for FLWS

May 2018Noble FinancialDowngradesBuyHold
May 2018DA DavidsonMaintainsNeutralNeutral
Dec 2017Northcoast ResearchDowngradesBuyNeutral

View More Analyst Ratings for FLWS
View the Latest Analyst Ratings

Posted-In: Kara Szafraniec Northcoast ResearchAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga


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