Lumber Liquidators Stock Cut To Hold From Buy At Cantor | Fox Business

Cantor Fitzgerald on Tuesday downgraded shares of hardwood floor retailer Lumber Liquidators Holdings Inc. to hold from buy, and said the company is facing too many legal and regulatory risks to justify the higher rating. Cantor lowered its price target on the stock to $26 from $42. "We don't think LL's business model is broken, and we continue to believe its value proposition and broad assortment will drive a sales recovery and market share gains over the long term," analysts wrote in a note. "Our near-term view has become much cloudier though, as LL faces uncertain outcomes from multiple regulatory and legal issues." The company's decision to halt all sales of Chinese laminates has left a void, said the note. Lumber Liquidators made that decision earlier this month, after a "60 Minutes" report in early March alleged that laminates sourced from China contained far higher than acceptable levels of formaldehyde. The stock was not yet active in premarket trade, but has lost 61% of its value in the year so far, while the S&P 500 has gained 3.4%.