Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Morgan Stanley’s Simeon Gutman believes that Lowe's Companies, Inc. (NYSE: LOW)
“offers a compelling mix of top-line and margin visibility in an increasingly choppy retail backdrop,” and mentioned that the company was one of their Top Investment Ideas.
Gutman maintained an Overweight rating on the company, while raising the price target from $84 to $87.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The analyst stated that there were three key pillars of Lowe’s Companies’ story.
Macro Factors
The home improvement retail sector continues to be healthy, with demand continuing to recover from the below average levels.
Gutman pointed out that the private fixed residential investment was still 55 basis points below its 15-year average, while the company had indicated that its higher ticket discretionary business was only halfway through recovery to its prior peak.
“We estimate there is a $12-15 billion sales opportunity as industry demand normalizes,” Gutman went on to say.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Professional Customers
The analyst believes that Lowe’s Companies has significant market share opportunity in the pro segment. Although this segment accounts for only 30 percent of the company’s sales, it has recently led to disproportionate comp growth.
According to the Morgan Stanley report, “Newly launched professional brands along with a pro only website and more targeted services are helping drive gains with the Pro. There was a step change in pro sales momentum in Q1, a clear signal that this strategy is resonating.”
Flow Through Improvement
Gutman expects Lowe’s Companies to see stronger flow through during the remainder of 2016, both due to expanding gross margin and the company’s efforts in this direction.
“LOW is able to deliver positive store-only comp growth while simultaneously growing its online mix, which is driving stronger returns,” the analyst added.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.