Wells Fargo analyst Zachary Fadem assigned a Buy rating to Lowe’s (NYSE: LOW) today and set a price target of $100. The company’s shares opened today at $90.05.
Fadem commented:
“We view today’s announcement as a positive catalyst for shares, and the first step in what we believe to be a likely multi-year turnaround at LOW. Based on our analysis, we calculate at least $900M in cost saving opportunities and see potential for 25-35% share upside over 2-3 years assuming the low end of 2-3 pts of EBIT margin improvement and 2-3x P/E turns. LOW is to report Q1 EPS tomorrow morning (5/23), and we look for incremental color on LOW 9am conference call. Reiterate Outperform.”
According to TipRanks.com, Fadem is a 3-star analyst with an average return of 6.7% and a 65.4% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.
Currently, the analyst consensus on Lowe’s is Moderate Buy and the average price target is $102.60, representing a 13.9% upside.
In a report issued on May 14, Credit Suisse also maintained a Buy rating on the stock with a $111 price target.
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Based on Lowe’s’ latest earnings release for the quarter ending January 31, the company reported a quarterly revenue of $15.49 billion and net profit of $553 million. In comparison, last year the company earned revenue of $16.86 billion and had a net profit of $600 million.
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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.
