Lowe's LOW 3Q results support Goldman Sachs' thesis that margin drivers are gaining visibility, driving accelerating EPS growth through year-end amidst a soft
top-line, bridging the gap to a sales turn as the macro stabilizes in 2011.
Goldman is raising its 2010 forecast by $0.01 to $1.42 to reflect the 3Q beat, while maintaining 4Q2010 at $0.18. 2011 and 2012 stay at $1.64 and $1.90, respectively. Given two straight top-line misses its sales is modeled
toward the low-end (+0.5%).
Goldman's 12-month target of $26 is based on P/E, DCF and normalized earnings.
Key risks include better margin on the upside. Downside risks include a tough housing market.
LOW closed Monday at $21.46
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