Haverty Furniture Growth Opportunities Amid Housing Trends and Retail Bankruptcies: Analyst Perspective

Benchmark analyst Michael Legg hedged Haverty Furniture Companies Inc HVT stock with a buy valuation and announced a price target of $41.

HVT is a family-controlled furniture retailer in the Southeast, operating 123 stores in 16 states.

After strong selling during COVID, current financial metrics are clouded and not fully understood by investors as we return to a more normal operating environment, the analyst said.
While the comps appear weak, they are actually moving against abnormally high COVID-related revenue growth and comparing favorably to pre-pandemic levels, the analyst said.
According to the analyst, internal initiatives, including expanded design services and a more robust online presence, resulted from pandemic pressures that led to improved margins.

The analyst said that furniture sales are tied to housing statistics. While national housing trends have deteriorated, major Haverty states including Texas and Florida are showing positive migration trends.

Analyst believes investment in HVT represents a relatively safe haven for retail exposure given the current economic environment, where inflation is impacting power consumers buying in a slowing real estate cycle.

The analyst said the company has more than $100 million of cash on its debt-free balance sheet, an estimated FCF of $67 million for 2024, a long-standing dividend and an ongoing share buyback.
The analyst believes that the company's debt-free balance sheet, strong free cash flow and continuously refined operations, combined with its current valuation, represent an attractive investment thesis for the company. action.

Additionally, the analyst added that the migration to the Southeast HVT market runs counter to national housing trends and that big box bankruptcies present opportunities of opportunistic growth.

Price Action: HVT shares are trading up 3.9% at $31.94 last checked on Tuesday.

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Business Jul 11, 2023 0 46 Add to Reading List

Haverty Furniture Growth Opportunities Amid Housing Trends and Retail Bankruptcies: Analyst Perspective

Benchmark analyst Michael Legg hedged Haverty Furniture Companies Inc HVT stock with a buy valuation and announced a price target of $41.

HVT is a family-controlled furniture retailer in the Southeast, operating 123 stores in 16 states.

After strong selling during COVID, current financial metrics are clouded and not fully understood by investors as we return to a more normal operating environment, the analyst said.

While the comps appear weak, they are actually moving against abnormally high COVID-related revenue growth and comparing favorably to pre-pandemic levels, the analyst said.

According to the analyst, internal initiatives, including expanded design services and a more robust online presence, resulted from pandemic pressures that led to improved margins.

The analyst said that furniture sales are tied to housing statistics. While national housing trends have deteriorated, major Haverty states including Texas and Florida are showing positive migration trends.

Analyst believes investment in HVT represents a relatively safe haven for retail exposure given the current economic environment, where inflation is impacting power consumers buying in a slowing real estate cycle.

The analyst said the company has more than $100 million of cash on its debt-free balance sheet, an estimated FCF of $67 million for 2024, a long-standing dividend and an ongoing share buyback.

The analyst believes that the company's debt-free balance sheet, strong free cash flow and continuously refined operations, combined with its current valuation, represent an attractive investment thesis for the company. action.

Additionally, the analyst added that the migration to the Southeast HVT market runs counter to national housing trends and that big box bankruptcies present opportunities of opportunistic growth.

Price Action: HVT shares are trading up 3.9% at $31.94 last checked on Tuesday.