KeyBanc Upgrades La-Z-Boy (LZB) to Overweight

KeyBanc analyst Bradley Thomas upgraded La-Z-Boy (NYSE: LZB) from Sector Weight to Overweight with a price target of $46.00.

The analyst comments: "LZB is a leading vertically integrated producer, manufacturer, and retailer with a primary focus on upholstered furniture (recliners, sofas, loveseats, etc.). LZB boasts $317.2M in net cash (20% of current market cap) and no outstanding debt. The stock is at $38.54, which is down 20% from its high of about $48 on January 30, 2025 (vs. the S&P 500 -9.7% over that time). LZB trades at 6.0x our 2026 EV/EBITDA estimate compared to the 10-year average of 7.9x, which is one of the lowest valuations of our furniture/furnishings coverage. LZB also trades at 11.9x our 2026 EPS estimate compared to the 10-year average P/E of 14x. Over the next two years, we think the multiple could exceed to its recent high valuation and reach 15x, leading to 25% upside just from multiple expansion. Coupled with our belief that underlying sales and EPS have upside as home-related spending recovers, we see potential for 50%+ upside in shares over two to three years. We believe that LZB has significant growth opportunities through the consolidation of its independent dealer network (45% of La-Z-Boy stores) and growth of its e-commerce brand Joybird, which we believe the market is underappreciating."

For an analyst ratings summary and ratings history on La-Z-Boy click here. For more ratings news on La-Z-Boy click here.

Shares of La-Z-Boy closed at $38.54 yesterday.

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