After Robert W. Baird and Wells Fargo gave Lowe’s (NYSE: LOW) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Brian Nagel reiterated a Buy rating on Lowe’s (NYSE: LOW) today and set a price target of $140. The company’s shares closed yesterday at $98.30.
Nagel said:
“Early in 2018, we identified LOW as a Top Pick and our preferred way to play the view that recently announced activist intervention could spur a long-overdue strategic repositioning at the chain. Now, following a string of positive developments at an eye toward 2019, we are increasingly of the opinion that the components are in place to support a potentially meaningful fundamental strengthening at the chain. Our analysis implies that miscues in store- level execution, more than inefficient unit locations, likely explain relatively soft sales productivity at Lowe’s. Significant sales and profit slack exists within the LOW operating model. Shares remain under-owned as a portfolio holding by traditional retail stock investors. Our new 12-18 month price target of $140 (up from $115) implies upside of more than 40% from current levels.”
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 8.3% and a 65.6% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Dick’s Sporting Goods, and Advance Auto Parts.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Lowe’s with a $109.91 average price target, which is an 11.8% upside from current levels. In a report issued on July 9, Wells Fargo also maintained a Buy rating on the stock with a $110 price target.
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Based on Lowe’s’ latest earnings release for the quarter ending April 30, the company reported a quarterly revenue of $17.36 billion and net profit of $985 million. In comparison, last year the company earned revenue of $16.86 billion and had a net profit of $600 million.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. Last month, Matthew Hollifield, the SVP Chief Accounting Officer of LOW sold 12,362 shares for a total of $1,230,762.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Lowe’s Cos., Inc. engages in the retail sale of home improvement products. It offers products for maintenance, repair, remodeling, home decorating, and property maintenance.
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