Lumber Liquidators (LL) Sees Sharp Upside; Goldman Lists 3 Reason to Remain Buy-Rated

(Updated - March 5, 2015 11:05 AM EST)

Lumber Liquidators (NYSE: LL) is gaining after being defended at Goldman Sachs. Earlier, Janney defended the stock.

UPDATE: In the intra-day report, Goldman Sachs' Matt Fassler said while they are cutting numbers they are maintaining a Buy rating pending the March 12 call.

The firm is maintaining its Buy rating for three reasons:

1. The stock has corrected dramatically, and risk/reward looks favorable

2. LL will speak to the Street on March 12, with a week of preparation to answer critics. They have no reason not to believe the company's recent assertions and have not seen proof of danger to customers.

3. While they see significant marketing risk, the Chinese-made laminate products is only a small portion of its product mix.

The firm cut 2015 EPS from $2.50 to $2.50 and cut 2016 EPS from $3.00 to $2.35. The firm cut its price target to $40 from $60.

You May Also Be Interested In

• Goldman Sachs on Meta Platforms Inc. (META): 'We expect investors to have an initial negative reaction'
• Korean Air in Talks to Buy at Least 10 Boeing 777X Jets (BA) - Reuters
• AGBA Group Holding (AGBA) selling off into close, down over 17%