Lumber Liquidators Still Reeling From '60 Minutes' Report? Goldman Sachs Downgrades

Goldman Sachs on Friday issued a report on

, downgrading the retailer from Buy to Neutral due to a lower forecasted operating margin. Goldman Sachs also lowered its price target from $40 to $35. Analysts Matthew Fassler, Katie Price, Stephen Tanal and Chandni Luthra wrote, "the stock has under-performed sharply, on a combination of weather-driven sales weakness, supply chain disruption and reputational challenges on questions about product safety...we anticipated a hit to sales from recent reputational challenges, but the hit to margin was more severe." After the "60 minutes" report, Lumber Liquidators stated that it is unlikely its floors are releasing dangerous levels of formaldehyde. However, questions remain why the company failed the "60 Minutes" quality test when its competitors did not. Shares of Lumber Liquidators closed Thursday at $36.08.