UPDATE: Piper Jaffray Raises PT to $34 on Lowe's Companies; Remodeling Cycle Kicking In

Piper Jaffray reiterated its Neutral rating on Lowe's Companies

but raised its price target from $29 to $34. Piper Jaffray said, "While we are maintaining our Neutral rating for now, we are growing incrementally more positive on LOW following a well-executed Q3 in which the company posted upside to both sales and EPS estimates. Based on our proprietary survey work, we continue to expect home remodel spending to accelerate into 2013. With LOW posting a Q3 comp of 1.8% driving an increase in 2- and 3-year stacked trends, early evidence suggests an improving industry backdrop is beginning to impact LOW results. Valuation has stepped up meaningfully in the last 3 months and the company faces two quarters of tougher compares so we are maintaining our Neutral rating for now." Lowe's Companies closed at $31.98 on Friday.