UPDATE: Canaccord Genuity Reiterates On Lumber Liquidators As Momentum Vanishes In Q2
In a report published Thursday, Canaccord Genuity analyst Laura Champine reiterated a Buy rating on Lumber Liquidators (NYSE: LL), but lowered the price target from $122.00 to $100.00.
In the report, Canaccord Genuity noted, “We are lowering our Q2 EPS estimate from $0.94 to $0.61, compared with guidance of $0.59-$0.61 and prior consensus of $0.90. LL reported a Q2 SSS decline of 7.1% on top of +14.9% versus expectations of +7%. Total customers invoiced declined 5% yr./yr., the steepest decline in three years. LL did not regain momentum after difficult Q1 weather as we had anticipated, and management is blaming macroeconomic factors.
"The 131 stores impacted by weather experienced a SSS decline of 13%, with non-impacted stores -2%. We are lowering our FY14 EPS estimate from $3.35 to $2.70 on SSS -2.5% on top of +15.8% (we had previously forecast +6.3%). We still project double-digit sales and EPS growth over the long term, keeping us BUY rated. Given consecutive quarterly EPS misses and limited near-term visibility, we think investors will view LL as a show-me stock over the next few months.”
Lumber Liquidators closed on Wednesday at $70.42.
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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