Lumber Liquidators calls lawsuit allegations 'flat-out false' Lumber Liquidators issued the following statement in response to a lawsuit filed in California state court by the Global Community Monitor organization and Sunshine Park: "The allegations in this lawsuit concerning our product are simply flat-out false. Our product meets relevant environmental standards and undergoes rigorous, independent, third-party testing. More specifically, our internal testing and that conducted by third parties concluded that product levels fell well below the Proposition 65 'safe harbor' limits. Further, Lumber Liquidators' products are produced and independently tested to ensure compliance with the low emissions standards set by the California Air Resource Board (CARB). We apply these stringent California standards to products we sell nationwide... In short, all of our flooring meets the highest quality and environmental standards – that's why we sell it, that's why we use it in our own homes, and that's why we are a market leader. We will not let factually inaccurate and legally flawed lawsuits filed by a party with a clear financial motive influence our approach to our business or our customers."
On The Fly: Analyst Upgrade Summary Today's noteworthy upgrades include: Aruba Networks (ARUN) upgraded to Outperform from Market Perform at Raymond James... Banco Bilbao (BBVA) upgraded to Neutral from Underperform at BofA/Merrill... Berry Plastics (BERY) upgraded to Outperform from Market Perform at BMO Capital... Denny's (DENN) upgraded to Buy from Neutral at Janney Capital... Hess Corp. (HES) upgraded to Outperform from Market Perform at Raymond James... Huaneng Power (HNP) upgraded to Buy from Neutral at BofA/Merrill... Infoblox (BLOX) upgraded to Buy from Hold at Needham... Kate Spade (KATE) upgraded at BofA/Merrill... Lumber Liquidators (LL) upgraded to Overweight from Equal Weight at Morgan Stanley... Occidental Petroleum (OXY) upgraded to Strong Buy from Outperform at Raymond James... PT Indosat (IIT) upgraded to Buy from Neutral at Nomura... Silvercorp Metals (SVM) upgraded to Outperform from Market Perform at Raymond James... Toro Company (TTC) upgraded to Buy from Neutral at Longbow... United Microelectronics (UMC) upgraded to Market Perform from Underperform at Bernstein.
Lumber Liquidators upgraded to Overweight from Equal Weight at Morgan Stanley Morgan Stanley upgraded Lumber Liquidators to Overweight with an $85 price target. The firm believes gross margin worries are overdone and 2014 comp declines should be a bottom. Morgan Stanley's checks indicate non-weather regions are healthy with mid single digit comp growth and weather impacted regions have improved since August.