Piper Jaffray Recommends Buying Lumber Liquidators Holdings on Weakness Created by Updated Guidance

In a report published Tuesday, Piper Jaffray analyst Peter J. Keith reiterated an Overweight rating and $135.00 price target on

. In the report, Piper Jaffray noted, “We are recommending investors buy shares of LL this morning on weakness caused by the company's updated guidance last night. We believe most investors are focused on the lower than anticipated GM for Q4, which can be explained primarily by a shift to solid hardwood sales which carry a lower GM but contribute to higher gross profit dollar growth given the products high ticket nature. Additionally, the company provided an initial 2014 outlook which was above current consensus on a sales basis but the midpoint is slightly below on an EPS basis. We believe the company is setting up for a beat and raise cadence and believe the 2014 guidance looks conservative.” Lumber Liquidators Holdings closed on Monday at $103.80.