Goldman Sachs Raises Lowe's 2012 EPS Forecast

Goldman Sachs said that it still sees excellent risk/reward in Lowe's Companies, Inc.'s LOW shares, as a stabilizing consumer backdrop suggests stable-to-improving demand; stable sector gross margins, tight cost discipline, and thoughtful capital allocation aid earnings visibility; and risk/reward looks favorable. “We are raising our 2012 EPS forecast by $0.02 to $1.92 on a bigger buyback and tighter cost management, offsetting less gross margin expansion,” Goldman Sachs writes. “‘10/'11 remain unchanged.” Lowe's currently trades at $22.70.