Lowe’s Companies, Inc. (NYSE:LOW) and RONA announced that Lowe’s, through a wholly owned subsidiary, and RONA have entered into a definitive agreement for the acquisition of RONA’s outstanding Cumulative 5-Year Rate Reset Series 6 Class A Preferred Shares and Cumulative Floating Rate Series 7 Class A Preferred Shares (collectively, the “Preferred Shares”) for C$24 per share in cash pursuant to a plan of arrangement under the Business Corporations Act (Québec).

The board of directors of RONA, after consultation with its financial and legal advisors, has unanimously approved the transaction and has resolved to unanimously recommend that holders of the Preferred Shares (the “Preferred Shareholders”) vote in favour of the transaction at a meeting of Preferred Shareholders to be held to consider the transaction.  RBC Capital Markets has provided a fairness opinion to RONA’s board of directors that, subject to the assumptions, limitations and qualifications set out in such fairness opinion, and as of the date of such opinion, the consideration under the transaction is fair from a financial point of view to the Preferred Shareholders.

The transaction is subject to court approval and the requisite approval of the Preferred Shareholders.  Assuming the required approvals are received, the transaction is expected to be consummated before the end of the year. (Original Source)

Shares of Lowe’s Companies closed yesterday at $72.09, down $0.16 or -0.22%. LOW has a 1-year high of $83.65 and a 1-year low of $62.62. The stock’s 50-day moving average is $74.05 and its 200-day moving average is $77.19.

On the ratings front, LOW stock has been the subject of a number of recent research reports. In a report issued on September 23, Credit Suisse analyst Seth Sigman reiterated a Buy rating on LOW, with a price target of $80, which implies an upside of 11% from current levels. Separately, on September 19, Baird’s Peter Benedict reiterated a Buy rating on the stock and has a price target of $88.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Seth Sigman and Peter Benedict have a total average return of 2.5% and -0.3% respectively. Sigman has a success rate of 48% and is ranked #1536 out of 4190 analysts, while Benedict has a success rate of 44% and is ranked #2866.

Overall, 3 research analysts have assigned a Hold rating and 12 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $89.60 which is 24.3% above where the stock closed yesterday.

Lowe’s Cos., Inc. is engaged in the retail sale of home improvement products. The company offers products for maintenance, repair, remodeling, home decorating and property maintenance. It also offers home improvement products in the following categories: appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lighting & fans, outdoor living, windows and doors.