Goldman Sachs Reiterates Neutral on Lowe’s (LOW)

Goldman Sachs is out with a research report this morning, where it reiterates its Neutral rating on Lowe’s Companies Inc. LOW; it has a $24 price target on the stock. The GS analysts said that, while the company’s recent earnings report disappointed, it did not miss by much. They believe this shows that the environment for housing-related retail is not quite as bad as initially feared, and that LOW has recovered from inventory and margin missteps it saw in Q1. With that said, the GS analysts are maintaining their estimates, noting that this suggests accelerating earnings growth through the year. They also noted the market’s response to the earnings, which suggests ongoing skepticism about the firm’s outlook. GS believes that that weakness could yield an opportunity.