Jefferies gives 'buy' rating to Lumber Liquidators
Jefferies analyst initiates coverage of Lumber Liquidators with 'buy' rating
Jefferies initiated coverage of Lumber Liquidators Holdings Inc. on Monday, saying that the discount wood flooring retailer has a "long-runway" for profitable growth.
THE OPINION: Analyst Daniel Binder gave Lumber Liquidators' stock a "buy" rating with a target price of $115.
The analyst said that the company has executed well on its low cost, price-leading strategy and also delivered high-quality products and service. He said in a note to clients that the company has a unique industry position with its direct sourcing from mills, national scale and proprietary brands that give it an edge.
Binder expects that the company's plans to reach out to more casual consumers and revamp its stores should add to its growth. They also said the company is well-positioned to benefit from further recovery in the housing market.
THE STOCK: Shares of the company added 23 cents to hit $96.11 by late afternoon Monday, amid a broader market drop. The Virginia-based company's stock price has more than doubled in the past year.
