UPDATE: Goldman Sachs Downgrades Lumber Liquidators to Neutral, Maintains PT
In an action report published earlier today, the Goldman Sachs Group Inc. downgraded the rating for Lumber Liquidators Holdings, Inc. (NYSE: LL) from Buy to Neutral, but maintained its price target of $25.
Goldman Sachs explained their reason for the downgrade by saying “The biggest factor is price: the stock is now at our price target, revised higher several times, and now trades at P/E premiums to its own historical averages and to HD/LOW, having outperformed these names as well as key housing indexes. We expect improving sales trends, but we do question whether there will be enough operating leverage to sharply exceed earnings expectations given highly variable costs, higher container shipping rates, and a promotional backdrop.”
Lumber Liquidators Holdings, Inc. closed at $25.11 yesterday.
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