Market Overview

Why KeyBanc Prefers Lowe's, Central Garden & Pet Over Home Depot

Why KeyBanc Prefers Lowe's, Central Garden & Pet Over Home Depot

Trends in the home improvement industry are strong, according to KeyBanc Capital Markets data. 

The Analyst: Bradley Thomas has an Overweight rating on Lowe’s (NYSE: LOW) with a $165 price target; a Sector Weight rating on Home Depot (NYSE: HD); and an Overweight rating on Central Garden & Pet Company (NASDAQ: CENTA) with a price target raised from $38 to $40.

The Home Improvement Takeaways: During the second quarter, the indexed spend growth at Lowe’s and Home Depot’s was the strongest “we have ever seen in our data for the respective companies,” Thomas said in a Sunday note. (See his track record here.)

“We expect investments in the home to be a semi permanent shift in behavior during what seems to be an extended period that COVID-19 will impact the country,” the analyst said. 

Looking ahead, he said home-related spending could benefit from a $500-billion wallet share as more consumers reduce their expenditures on travel, entertainment and dining out.

The retailers have seen robust store growth in the months of June and July, Thomas said. 

The analyst prefers Lowe’s over Home Depot given Lowe’s larger exposure with the DIY customer.

He reiterated an Overweight rating on Central Garden & Pet, which Thomas said is expected to benefit from garden and pet category growth.

HD Price Action: Home Depot shares were up 0.38% at $266.50 at last check Monday. 

LOW Price Action: Lowe's shares were up 1.04% at $150.46. 

CENTA Price Action: Central Garden & Pet shares were growing 5.02% to $36.39.

Latest Ratings for CENTA

Aug 2020KeyBancMaintainsOverweight
Aug 2020KeyBancMaintainsOverweight
May 2020KeyBancMaintainsOverweight

View More Analyst Ratings for CENTA
View the Latest Analyst Ratings


Related Articles (CENTA)

View Comments and Join the Discussion!

Posted-In: Bradley Thomas home improvement KeyBanc Capital MarketsAnalyst Color Price Target Reiteration Analyst Ratings

Latest Ratings

DOWTruist SecuritiesMaintains55.0
SBUXJP MorganMaintains80.0
BCDAAlliance Global PartnersInitiates Coverage On11.5
EURNJonesTradingInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at