Goldman Sachs Reiterates Buy, $28 Target on Lowe's

Goldman Sachs maintains its Buy rating and $28 target price on Lowe's Companies, Inc. (NYSE: LOW) as company moves to address its underperformance.

Goldman says, “Management's financial targets look aggressive (10% EBIT margin in 2015, up from 7.3% today and $3.66 in EPS, up from $1.56 today) but the stock discounts far less, on our estimates. Also, the company – frustratingly but not surprisingly – was not terribly clear about the cadence of progress toward its financial goals; it offered no 2012 guidance and indicated it will move away from quarterly guidance. The bright side of this decision is that it is not likely to fall short of its own targets in the short run.”

LOW closed at $24.77 per share.