UPDATE: JP Morgan Raises PT to $40 on Lowe's Companies on Solid Results
JP Morgan maintained Lowe's Companies (NYSE: LOW) with a Neutral rating and raised the price target from $37.00 to $40.00.
JP Morgan noted, "LOW posted solid results in 4Q with comps of 1.9% vs. our expectation of flat and EPS of $0.26 vs. $0.23E (an ~8% earnings beat ex-tax). Same-store sales accelerated 140 bps on a two year rate as the turnaround (100 bps), Sandy (70 bps) and housing combined to drive the sales upside. Investors reacted by driving the stock down ~5% (S&P500 down 1.8%) given the ~50% run in the stock since its August earnings report. … While management has had some difficulty with guidance in recent years and was always regarded as "a spender" we believe the selloff had more to do with valuation and expectations than a significant shift in the story."
Lowe's Companies closed at $35.86 on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: JP Morgan