Market Overview

UPDATE: JP Morgan Raises PT to $40 on Lowe's Companies on Solid Results

Related LOW
CNBC's Survey On Retail Survivors In 25 Years
IPO Lookout: Busy Week Brings The Biggest IPO Since Facebook
A Stock Play to Help You Sleep at Night (Fox Business)

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.

Posted-In: JP MorganAnalyst Color Price Target Analyst Ratings

 

Most Popular

Related Articles (LOW)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters