Canaccord Genuity Reiterates a 'Buy' on Lumber Liquidators (LL); Raising PT and Estimates on Gross Margin Expansion
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Price: $88.01 -1.17%
Rating Summary:
5 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Rating Summary:
5 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Trade LL Now!
Canaccord Genuity maintains a 'Buy' on Lumber Liquidators (NYSE: LL) price target raised from $28 to $35.
Analyst, Laura Champine, said, "We believe LL’s new sourcing initiatives will drive gross margin expansion of 370bps from FY11 to FY16. The company will reinvest in its value proposition and marketing message, but we expect a good portion of the cost savings will fall to the bottom line. We expect LL’s gross margin to improve 134bps yr./yr. in FY12, and our EPS estimate of $1.25 is $0.02 ahead of consensus and at the high end of management’s guidance range. We have raised our FY13 projections as we believe line reviews will continue to benefit gross margin. We forecast 75bps of gross margin expansion to a record 37.4% in FY13, up from our prior estimate of a 3bps improvement. We are raising our FY13 EPS estimate by $0.13 to $1.56, which is the highest forecast among all sell-side analysts. We estimate EPS will increase at a five-year CAGR of 23%."
For an analyst ratings summary and ratings history on Lumber Liquidators click here. For more ratings news on Lumber Liquidators click here.
Shares of Lumber Liquidators closed at $28.61 yesterday, with a 52 week range of $13.43-$29.49.
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Analyst, Laura Champine, said, "We believe LL’s new sourcing initiatives will drive gross margin expansion of 370bps from FY11 to FY16. The company will reinvest in its value proposition and marketing message, but we expect a good portion of the cost savings will fall to the bottom line. We expect LL’s gross margin to improve 134bps yr./yr. in FY12, and our EPS estimate of $1.25 is $0.02 ahead of consensus and at the high end of management’s guidance range. We have raised our FY13 projections as we believe line reviews will continue to benefit gross margin. We forecast 75bps of gross margin expansion to a record 37.4% in FY13, up from our prior estimate of a 3bps improvement. We are raising our FY13 EPS estimate by $0.13 to $1.56, which is the highest forecast among all sell-side analysts. We estimate EPS will increase at a five-year CAGR of 23%."
For an analyst ratings summary and ratings history on Lumber Liquidators click here. For more ratings news on Lumber Liquidators click here.
Shares of Lumber Liquidators closed at $28.61 yesterday, with a 52 week range of $13.43-$29.49.
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