La-Z-Boy stock jumps 40% on June 3

Market reacts to ‘strong buy' rating

Furniture Today Staff -- Furniture Today, June 4, 2009

NEW YORK — La-Z-Boy's stock price jumped nearly 40% Wednesday after securities analyst Budd Bugatch upgraded the furniture manufacturer to a "strong buy."

The stock gained 85 cents to close at $3.03 as about 2.2 million shares were traded on the New York Stock Exchange, more than four times the average volume. It was the NYSE's biggest price gainer Wednesday.

Bugatch, an analyst with Raymond James, upgraded La-Z-Boy shares to "strong buy" from "market perform" and said his one-year price target is $4.50. In a note to clients, he said the company "should benefit from its mid-market price points, well-known brand name, wide distribution and heavy mix of upholstered revenues."

Like many other industry stocks, La-Z-Boy shares have tanked since September. The stock is still trading well below its 52-week high of $11.76, but is up from the low of 53 cents it reached in March.