Lumber Liquidators (LL) Lifted to $60 at Canaccord Genuity; 'Hold' Maintained

Canaccord Genuity analyst Laura Champine raised her price target on Lumber Liquidators (NYSE: LL) to $60.00 (from $51.00) on higher top-line growth expectations but maintained a Hold rating.

"We believe our prior sales outlook for LL was too conservative, particularly in FY15 as the company begins to lap its easiest
yr./yr. SSS comparisons since H1/12," Champine said. "Assuming a Q4/14 SSS decrease which we forecast (-1% on top of +15.6%), LL would anniversary declines in four straight quarters for the first time as a public entity. Home Depot (HD : NYSE : $100.43 | HOLD) and Lowe’s (LOW : NYSE : $66.09 | HOLD) point to strong demand for hard surface flooring."

The analyst added, "We believe many of LL’s struggles this year have been self-inflicted and caused by inventory mismanagement. Concerns remain regarding conversion rates and near-term gross margin as LL continues to clear substitute SKUs and old Bellawood product. Shares appear fairly valued to us at 22x our C2015E EPS estimate and 11x C2015E
EV/EBITDA."

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 $61.44 yesterday.

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