The Lovesac Company (NASDAQ:LOVE), known for its bean bag chairs, is poised to disrupt the furniture industry, according to analysts at Roth.
The firm reiterated its Buy rating and $47 price target for the Stamford, Connecticut company after its preliminary first-quarter results beat expectations. The price target is a nearly 30% premium over its Friday close.
Analyst Dave King was impressed with Lovesac’s patent-protected modular couches, known as 'Sactionals,' which can be rearranged in a variety of configurations. The company is an interesting acquisition target for larger furniture players, King noted in a research note.
READ: Lovesac's fiscal 4Q earnings beat Wall Street estimates on strong sales; stock surges
Preliminary first-quarter revenue grew about 52% year over year, King wrote, to between $40.7 million and $40.9 million, beating the Roth estimate of $37.6 million. Earlier this month, the company raised $27 million in a secondary public offering.
Lovesac, which also make acessories such as drink-holders, sac blankets and pillows, sells its products online and through its 75 showrooms in 30 states.
Shares climbed 0.6% to $36.47 Tuesday.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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