KeyBanc Upgrades Ethan Allen Interiors (ETH) to Hold; Furniture Trends Positive, Valuation Still an Overhang

KeyBanc upgraded Ethan Allen Interiors (NYSE: ETH) from Underweight to Hold.

KeyBanc analyst says, "We believe trends through the quarter remained healthy, and we are encouraged by marketing and merchandising initiatives in place for 2011. While we believe ETH shares present a compelling long-term opportunity, with the potential for $3.00+ in earnings power, valuation remains among the most expensive in our coverage. Furthermore, ETH faces very difficult comparisons in the upcoming September and December quarters, which could result in yearly declines in sales and EPS. As such, we believe a HOLD rating is appropriate at this time."

For more ratings news on Ethan Allen Interiors click here and for the rating history of Ethan Allen Interiors click here.

Shares of Ethan Allen Interiors closed at $22.07 yesterday.

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