KeyBanc On At Home Group's Q3: 'Differentiated Growth Story'

At Home Group Inc HOME reported strong third-quarter results, and its prospects appear bright for the next few quarters, according to KeyBanc Capital Markets.

The At Home Analyst: Bradley Thomas maintained a Sector Weight rating on At Home.

The At Home Thesis: The company’s sales were strong in the third quarter, driven by robust demand, and the strength has continued into the beginning of the holiday season, Thomas said in a Tuesday note.

Management has indicated some slowdown in sales due to limited seasonal inventory, the analyst said. 

“At Home is a differentiated growth story in the home furnishings industry. In a normal environment, its LT outlook is underpinned by an expanding store base with numerous drivers for LT growth (private label credit card program, EDLP+ program, enhanced advertising, and an expanded omnichannel offering),” he said. 

“HOME’s competitive positioning is supported by its leading merchandise assortment, which is broader than any physical retailer we are aware of, as well as its low prices.” 

HOME Price Target: Shares of At Home Group were down slightly at $18.41 at last check Wednesday.