Raymond James Cuts Stanley Furniture Rating

Analyst Budd Bugatch cites a recent run-up in the furniture maker's stock price

Raymond James downgraded Stanley Furniture (STLY ) to market perform from strong buy.

Analyst Budd Bugatch says his downgrade comes on the heels of the stock's recent upward climb, with shares up about 35% since Jan. 1, vs. a market move of 15%. He notes his only reservation about downgrading now is that the company is at the headwaters of a stream of improving sales and earnings.

Bugatch says in the second quarter, the furniture maker's sales advanced by 11%, management's best-case guidance for third-quarter sales growth is 6%, and earnings per share guidance is 55 cents to 57 cents. He notes his third-quarter estimates are higher than guidance, projecting an 8% sales gain, and 60 cents earnings per share.

But Bugatch notes the shares are very near his previous $33 target.

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