10 Best Short Squeeze Stocks to Buy According to Analysts

5. The Lovesac Company (NASDAQ:LOVE)

Short % of Float: 21.91%

Number of Hedge Fund Holders: 33

Analysts Upside Potential: 125.8%

The Lovesac Company (NASDAQ:LOVE), headquartered in Stamford, Connecticut, designs and sells modular furniture, including signature Sectionals with customizable, reconfigurable seating solutions. The company differentiates itself from traditional furniture retailers by concentrating on sustainable materials and washable, durable covers. In doing so, they appeal to the modern eco-conscious consumers. With showrooms across 41 states, the company competes with market leaders like La-Z-Boy and IKEA by emphasizing innovation and flexibility in home furnishings.

The Lovesac Company (NASDAQ:LOVE) has a notable short interest of 21.91%, turning it into a potential short-squeeze target for investors. The rise comes after the company announced its outlook guidance for 2025. The company anticipates net sales in the range of $660 million to $680 million and an adjusted EBITDA of $37.5 million to $48.5 million. The company aims to cover these projections by entering the loveseat, sofa, and chair category with the launch of EverCouch in 2025 and expanding beyond its Sactionals format, thereby experiencing a positive reception in the market.

Institutional investors are heavily involved in The Lovesac Company (NASDAQ:LOVE), with 33 hedge funds, followed by Insider Monkey, holding stakes at the end of Q4. Analysts remain bullish, assigning a Buy rating and setting a price target of $35, representing an upside of 125.81% from the current price of $15.50. The strong institutional support and high short interest suggest that any positive developments could lead to a wave of short covering.