Goldman Sachs updates on Sell-rated Lumber Liquidators (LL +7%) following the company's above-consensus Q2 report.
"We believe that there’s good visibility to LL’s return to profitability after multiple challenging years, but that the stock’s current price level embeds a much faster recovery than the company can deliver," writes the GS team.
"Based on our valuation methodology, to earn its current market cap LL would have to achieve ~$100mn in EBITDA in 2019, nearly 2x what we expect it to earn."
Goldman Sach lifts its 12-month price target on Lumber Liquidators to $18 from $16, a level that still implies a 50% drop from the current share price.
Previously: Lumber Liquidators beats by $0.23, beats on revenue (Aug. 1)
Previously: Lumber Liquidators soars after results improve (Aug. 1)
Now read: Home Depot Vs. Lowes »
Subscribe for full text news in your inbox