Raymond James turned cautious on La-Z-Boy ( NYSE: LZB ) with a downgrade to a Market Perform rating from Outperform.
Analyst Bobby Griffin and team said the ratings change is not a reflection on F1Q23 results or F2Q guidance, but concerns that forward LZB numbers are coming down as there is more uncertainty on the backlog delivery given inventory positioning in the wholesale business, as well as the uncertainty surrounding recovery in written trends post summer.
The near-term forward outlook for growth is called challenging with slowing U.S. housing statistics in play and retailers adjusting inventory levels.
Over the longer-term, Raymond James continue to see upside for La-Z-Boy through growth in its Joybird business, additional La-Z-Boy branded furniture galleries, and increased digital exposure to the legacy La-Z-Boy brand.
Shares of LZB fell 0.99% premarket on Thursday to $28.89.
Read the recent LZB earnings call transcript.
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La-Z-Boy is cut at Raymond James due to challenging housing backdrop