UPDATE: Stifel Nicolaus Downgrades Lumber Liquidators to Sell on Valuation
Stifel Nicolaus reduced its rating on Lumber Liquidators (NYSE: LL) 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.
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