Lowe's Companies, Inc. LOW hosted an analyst day, which Deutsche Bank believes presented two key takeaways.
“First, we believe LOW is targeting a lower sales, but higher margin, outlook relative to previous long-term guidance, with gross margin opportunities on several,” Deutsche Bank writes.
“Secondly, LOW significantly ramped its buyback projections, moving from a run-rate of $3.6b by FY14 to an average of $3.6b per year through FY15. We maintain our Buy rating on valuation and suppressed near-term earnings relative to its long-term potential.”
Deutsche Bank maintains its Buy rating and $26 price target, adding, “Our $26 price target is based on 15x our FY11 EPS forecast. The 15x multiple is in line with the 5-year group average. Downside risks for LOW are primarily housing related. Specifically, housing markets may fail to improve, even as mortgage rates decline.”
Lowe's currently trades at $22.70.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in