Oppenheimer upgraded Lumber Liquidators (LL) to Outperform from Perform, saying the company's new management team and the continued strong positive catalysts for its sector may help its recovery continue.

RESULTS, OUTLOOK: Lumber Liquidators' comparable sales jumped 4.7% last quarter, representing its third straight quarter of positive year-over-year comparable sales growth, noted Oppenheimer analyst Brian Nagel. Improvements in the retailer's merchandise and its improved execution, along with continued "healthy" demand, are boosting its sales, Nagel believes.

OUTLOOK: Lumber Liquidators' earnings per share can reach $2.15-$2.50 as its margins rise, it adds new stores and it starts repurchasing shares after 2019, Nagel stated. The analyst added that "successful, small-cap turnaround plays have tended to make for some of the best retail stocks."

TARGET: Nagel set a $34 price target on the stock.

PRICE ACTION: In morning trading, Lumber Liquidators rose 10.5% to $28.95.