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KeyBanc Reiterates a 'Buy' on Lumber Liquidators (LL); Raises Price Target & EPS Estimates

May 4, 2009 9:11 AM EDT
LL Hot Sheet
Rating Summary:
    5 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
KeyBanc reiterates a 'Buy' rating on Lumber Liquidators (NYSE: LL). Price target raised to $18 from $15.

KeyBanc analyst says, "We are becoming more positive on the housing outlook for 2H09 and 2010. We've modeled in slightly better comps for mature stores and have built a waterfall comp analysis to better demonstrate the positive tailwind LL has from new store growth. As a result, we are raising our EPS estimates for 2009 to $0.84 from $0.80, now based on a -4% comp vs. -5% previously. We are raising our 2010 estimate to $0.99 from $0.90. Management guidance for 2009 is $0.76-$0.86 (representing growth of 1-15%) and FC is $0.82. Sales are expected to grow 7-10%, primarily driven by 30-36 new stores (representing 20-24% growth). Comps are expected to decrease low to mid single digits, which would outpace plans from home improvement competitors."

Lumber Liquidators, Inc. (Lumber Liquidators) is a specialty retailer of hardwood flooring in the United States.

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