1-800-FLOWERS.COM (FLWS) Stock Receives Rating Upgrade and Price Target Adjustment by DA Davidson
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) recently saw a change in its stock rating and price target by DA Davidson. The firm upgraded the company's rating from Underperform to Neutral, while lowering the price target from $8.00 to $7.00. This adjustment comes after the company's fourth-quarter financial results for fiscal year 2024 fell short of expectations.
The analyst from DA Davidson highlighted that 1-800-FLOWERS.COM's fourth-quarter results were below projections, and the guidance for fiscal year 2025's EBITDA is expected to be lower than the consensus estimate of $99.4 million. The current low consumer sentiment is believed to be a factor contributing to potential delays in the company's return to positive sales growth.
Despite these challenges, there are positive signs for 1-800-FLOWERS.COM. The company's data aligns with Bloomberg debit card data, indicating that the year-over-year sales change for the first quarter of fiscal year 2025 may not be as negative as previously thought. This has led to a more realistic alignment of market expectations with the company's near-term prospects.
In light of the significant decline in the stock price, DA Davidson has revised its rating to a more neutral stance. The firm has also adjusted its price target and earnings estimates based on a 5-times multiple of the company's projected calendar year 2025 EBITDA, which has been revised down to $97 million from $106 million.
Overall, the revised rating and price target by DA Davidson suggest a shift in perspective on the near-term risks and valuation of 1-800-FLOWERS.COM. Investors will be monitoring the company's stock performance and financial outlook closely as it navigates the current market environment.
Analysis: 1-800-FLOWERS.COM has faced challenges in its recent financial results, leading to a stock rating upgrade and price target adjustment by DA Davidson. The company's ability to align with market expectations and show positive sales trends in the near term will be crucial for its future performance. Investors should keep an eye on how 1-800-FLOWERS.COM navigates these challenges and implements strategic investments to enhance its growth potential.