Goldman Sachs Raises PT on Lowe's to $23

Goldman Sachs has published a research report on Lowe's Companies LOW after the company announced its plans to close 20 stores. In the report, Goldman Sachs writes, "LOW pared its annual new store assumptions to 10-15 per year from roughly 30 stores previously. Cash exit costs are expected to total $90-$115 mn, in addition to a 3Q non cash charge of $245-$285 mn. The closed stores average four years old; they were not generating cash. The closings, in addition to seven announced in August, mark the completion of the review of 53 units on the firm's “watch list.” Of these units, 13 operated in major metros. 18 of the 20 have a HD closer than the next closest LOW unit." Goldman Sachs has raised the price target on Lowe's to $23 and maintains its Neutral rating. Lowe's is currently trading up $0.22 from its $20.93 closing price on Friday.