UPDATE: KeyBanc Downgrades Lumber Liquidators to Hold on Balanced Risk/Reward

KeyBanc reduces its rating on Lumber Liduidators LL from Buy to Hold and suspends its previous $29 price target on shares. KeyBanc notes, "Over the last several years, we have remained bulls on the underlying business, management team, and growth opportunity; however, with the stock up 94.9% year-to-date (vs. 8.6% increase in the S&P 500) and valuation essentially at all-time highs (at a P/E of 27x 2012 and 22x 2013), we now believe the risk/reward is more balanced. We do see upside to consensus estimates for the 2Q; normally we would maintain or reiterate our BUY rating under such circumstance, but given the stock appreciation and current valuation, we believe a more careful approach is warranted." LL closed at $34.42 on Monday.