UPDATE: Credit Suisse Initiates Lumber Liquidators at Outperform on Margin Opportunity
Credit Suisse initiated coverage on Lumber Liquidators (NYSE: LL) with an Outperform rating and a $68.00 price target.
Credit Suisse commented, "We are initiating coverage of LL with an Outperform rating and a $68 target price as we believe LL's management team has transformed the business from an inconsistent player to a market leader with significant share gain opportunities ahead. … One of the keys to the investment story is how much higher gross margins can rise, as previous management commentary has suggested a ceiling of ~40% that the market seems to accept. Given the company's direct sourcing moves and the competitive advantages LL has over peers, we see it pushing gross margins beyond the 40% range which should put it in the select group of rapid-growth retailers with years of growth ahead.
Lumber Liquidators closed at $57.35 on Monday.
Latest Ratings for LL
|Dec 2014||Nomura||Initiates Coverage on||Buy|
|Nov 2014||Morgan Stanley||Upgrades||Equal-weight||Overweight|
|Nov 2014||Canaccord Genuity||Downgrades||Hold||Buy|
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