ISI Group Lifts Target to $19 on Lumber Liquidators

ISI Group raises its target price on Hold-rated Lumber Liquidators LL to $19 from $17 as it believes current valuation does not fully account for comps store growth. ISI Group says, "Unlike many of the other discretionary housing names in the space, LL either discounts the 7.5% store growth (given) or the prospect of a 5% comp (an underlying assumption increasingly being discounted on HD and LOW over the next 2 years), but not both. While the concern on cannibalization and the ultimate number of stores LL needs will remain an unresolved issue in 2012, the market appears ready to discount the growth, but not the comp upside." LL closed at $19.17 a share on Thursday.