La-Z-Boy Upgraded By Raymond James; Shares Climb

CHICAGO (AP) — Shares of La-Z-Boy Inc. soared Wednesday after an analyst upgraded shares of the furniture maker, saying the company will likely benefit from its middle-market prices when consumers begin to buy furniture again.

Raymond James analyst Budd Bugatch boosted his rating on the Monroe, Mich.-based company to "Strong Buy" from "Market Perform" on Wednesday.

La-Z-Boy shares rose 51 cents, or 23 percent, to $2.69 in midday trading Wednesday.

"Clearly, industry conditions remain exceptionally difficult; however, our channel checks suggest the pace of decline may be stabilizing," he wrote in a research note, saying that consumer confidence and housing activity are beginning to show signs of improvement.

If both trends improve, that may mean consumers will be more willing to spend money, especially for more expensive items such as the company's arm chairs and sofas. Should that happen, Bugatch said, La-Z-Boy will be among the best positioned of the furniture makers, thanks to its mid-tier prices, well-known brand name and wide availability among other items.

Still, the company's retail division continues to post losses and its dealer base is under financial stress, Bugatch warned, saying he expects fourth-quarter results due later this month to be "messy."