Oppenheimer: Prospects Still Bright For The Home Depot, Inc. And Lowe's Companies, Inc.

In Friday's industry update, Oppenheimer analyst Brian Nagel raised the price target on The Home Depot, Inc. HD and Lowe's Companies, Inc. LOW from $93 and $57 to $101 and $60, respectively.

Nagel wrote, "While shares might lack a near-term “investable event, they should continue to grind higher through at least early 2015 on improving fundamentals, sector-leading earnings growth and potential EPS upside, and still-accommodative valuations."

Additionally, Nagel views the "recent upticks" in new home sales and housing starts as an indicator of a potentially stronger industry backdrop for the next several months.