UPDATE: Stifel Nicolaus Downgrades Lumber Liquidators to Sell on Valuation

Stifel Nicolaus reduced its rating on Lumber Liquidators

from Hold to Sell. Stifel Nicolaus noted, "We are lowering our rating on LL from a Hold to a Sell as we believe fair value is in the $40 range, or 20X our 2013 EPS estimate. This is 26% down-side from last night's close and based on assumptions that most everything “goes right” fundamentally from here forward. The stock is on a stem having risen 212% YTD (compared with 9.7% for the S&P 500). It is now trading at 14.6X EV/estimated 2013 EBITDA and has a 2013 P/E of 27.2X with revenue growth not likely to exceed 12% on a sustainable basis. In our view, the stock is priced for perfection." Lumber Liquidators closed at $55.12 on Monday.