UPDATE: Stifel Nicolaus Raises PT to $23 on La-Z-Boy Incorporated on Strong Results
Stifel Nicolaus maintained La-Z-Boy Incorporated (NYSE: LZB) with a Buy rating and raised the price target from $18.00 to $23.00.
Stifel Nicolaus noted, "Clearly, investors were as enthused with La-Z-Boy's 3Q sales gain of 10.3% y/y as we were; the stock moved up 11.5% (compared to a 1.2% decline in the S&P 500) on Wednesday, following the earnings release. EPS of $0.32 beat our $0.22 estimate nicely (even after removing $0.04 of gains from sales of investments). This quarter did not have the same level of “noise” from 2Q, when there were a variety of incentive compensation accruals that temporarily hurt profitability. … We think that despite the boost in share price on Wednesday, the stock still shows a relatively attractive valuation, trading at 7x our FY14 EBITDA estimate."
La-Z-Boy Incorporated closed at $17.23 on Wednesday.
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