Goldman Sachs Maintains Neutral on Lumber Liquidators Holdings (LL)

Goldman Sachs is out with its report today on Lumber Liquidators Holdings LL, maintaining Neutral. In a note to clients, Goldman Sachs writes, "We remain Neutral-rated, for three reasons: (1) Management guidance is aggressive, particularly in light of the recent choppy SAP integration and the premature resumption of rapid store growth; (2) Our desire to see inventory turnover improve after years of erosion, which continued in 1Q11; and. (3) Our take on valuation, in light of these operating issues. That said, this is one of the more potent change stories in our sector, and is worth watching closely." Goldman Sachs maintains a $28 PT on LL. Shares of LL closed Thursday at $26.43.