KeyBanc Raises Price Target on La-Z-Boy (LZB) Following Solid Q2 Results

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LZB Hot Sheet

Rating Summary:
3 Buy, 2 Hold, 0 Sell

Rating Trend:

Up

Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38

KeyBanc is reaffirming its Buy rating on shares of La-Z-Boy (NYSE: LZB) and is increasing its price target from $10 to $13 following the release of its Q2 results.

The company reported solid Q2 results with earnings topping expectations and both sales and margins indicating strong trends. The firm notes La-Z-Boy's marketing, selling, and merchandising initiatives continue to drive its strong performance.

An analyst at KeyBanc comments, "While furniture sales remain challenged in the United States, LZB is successfully driving market share gains, which are likely to accelerate as the Company begins opening more stores in the coming year. We have a positive view on steps taken to improve profitability and believe the Company’s valuation remains supportive."

Following the release of the company's Q2 results and market trends, KeyBanc is increasing its FY12 and FY13 EPS estimates from $0.60 and $0.80 to $0.63 and $0.82.

For an analyst ratings summary and ratings history on La-Z-Boy click here. For more ratings news on La-Z-Boy click here.

Shares of La-Z-Boy closed at $9.90 yesterday, with a 52 week range of $6.76-$11.80.

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