Raymond James on Monday upgraded Lumber Liquidators Holdings Inc LL to Outperform from Market Perform amid three data points that allay concerns about Lumber Liquidators' recent woes.
Raymond James said that the tests commissioned by "60 Minutes" were of a deconstructed laminate – not the same as the tests that the California Air Resource Board mandates.
Raymond James, which commissioned its own tests, said that laminating some of the product "significantly seals in formaldehyde emissions" for the two SKUs that it tested. When the Consumer Product Safety Commission tests Lumber Liquidators' Chinese-made laminates as finished goods, Raymond James said it expects a "better result."
Finally, on April 2, Lumber Liquidators released a business update, which showed that Q1 sales were better than expected at $260 million.
Raymond James slapped a $40 price target on the stock, compared with a close of $33.20 on Thursday.
The stock was indicated another 2.4 percent higher at $34.01 in the premarket.
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