Lumber Liquidators (LL) Legal Woes Are Near An End, Now The Fundamentals Need To Stabilize - Raymond James

Raymond James analyst Budd Bugatch reiterated a Market Perform rating on Lumber Liquidators (NYSE: LL) after the company reported a 4Q18 comparable sales miss and forecasted a decline in 1Q19 comparable sales. The analyst sees this as worrisome in light of the slowdown in existing housing turnover over the last 6 months and encroachment of additional competition from Floor & Decor and improved flooring departments of Home Depot and Lowe's.

However, the litigation is less of an issue as the analyst stated "we are -- at long last -- starting to see light at the end of the tunnel in regards to Lumber Liquidators’ major legal woes. LL is becoming an “investible” stock again. Nonetheless, given the challenges of recent years and requisite sourcing and compliance changes, we have limited visibility into Lumber Liquidators' current store operating model and “normal” corporate overhead run rate".

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 $9.81 yesterday.

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