Update (9:40 a.m.): Updated with Thursday market open information and Jefferies quote.
NEW YORK (TheStreet) -- Jefferies reduced its target price on Lumber Liquidators (LL) to $124, reduced its EPS and set a "buy" rating. The firm noted near-term disruptive weather, but potential margin expansion down the road.
"We reiterate our Buy rating. Weather issues are fleeting and do not impact our LT view," Jefferies wrote in its research note. "With high short interest, we may have seen some short covering today as management did not lower full year 2014 guidance despite a soft start to the year as weather impedes business. Further, management reiterated its belief that there is further gross margin opportunity going forward as it improves sourcing, transportation and its mix of customers."
The stock was rising 0.21% to $100.79 shortly after the market opened on Thursday.
Must Read: Why Lumber Liquidators (LL) Is Up Today
Separately, TheStreet Ratings team rates LUMBER LIQUIDATORS HLDGS INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LUMBER LIQUIDATORS HLDGS INC (LL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."