Lovesac Company (LOVE): Three Analysts Still Say Buy. All Three Just Cut Their Targets
On September 10, 2026, The Lovesac Company (LOVE) reported a record second-quarter fiscal 2027 net sales of $161.2 million, accompanied by a net income of $7.4 million. The company's adjusted EBITDA was a loss of $1.3 million, reflecting a 40 basis point decline from the previous year. Analysts remain bullish, with Canaccord's Maria Ripps and Roth Capital's Matt Koranda each maintaining a Buy rating and cutting their price targets to $20 from $22.
DA Davidson lowered its target to $18 from $20. Despite the positive outlook, the underlying business continues to struggle, with gross margin declining 40 basis points and adjusted EBITDA remaining negative. The company ends the quarter with $68.8 million in cash and no debt. Hedge fund ownership remained flat at 20 funds, while short interest stands at 21.93% of float.
Analysts anticipate limited product contributions in the third quarter, with more significant impacts in the fourth quarter. While acknowledging LOVE's potential as an investment, some analysts believe AI stocks present greater upside and lower risk.
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