Piper Jaffray Reiterates Neutral Rating On Lowe's Companies

Piper Jaffray is out with a report on Lowe’s Companies (LOW), where it maintains its “neutral” rating and price target of $21.00 prior to LOW’s Q2 earnings report. On July 1, analysts cut its price target from $28.00 to $21.00 based on negative housing trends. The Piper Jaffray analysts stated, “We believe that the Homebuyer Tax Credit was successful in pulling demand forward, helping to somewhat stabilize prices through April. However, high unemployment, a continued overhang of foreclosures and the expiration of the tax credit are likely to drag on the housing market for the rest of F10.” Analysts are reiterating their Q2E EPS estimates of $0.58, which is 2 cents below consensus estimates. Risks to Lowe’s, the second largest home improvement retailer, include: the economy, loss of key executives, weather, and competition.