+ 2.69
+ 1.88%

Why This Lowe's Analyst Is Turning Bullish

May 13, 2021 12:26 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Why This Lowe's Analyst Is Turning Bullish

Although Lowe’s Companies Inc (NYSE:LOW) could continue to face near-term challenges, key economic indicators suggest a stronger-than-expected economic recovery and investors “should continue to focus upon shares of cyclically driven enterprises,” according to Oppenheimer.

The Lowe’s Analyst: Oppenheimer analyst Brian Nagel upgraded the rating for Lowe's from Perform to Outperform, while keeping the price target unchanged at $235.

The Lowe’s Thesis: The company and its stock have been “largely overlooked as a high-quality, self-help, inexpensive cyclical play,” Nagel said in the upgrade note.

The stock currently trades at a historically discounted valuation versus Home Depot Inc (NYSE:HD) and could benefit from “a continued flow of funds into more cyclically focused equities,” she added.

“We remain optimistic that ongoing internal initiatives at LOW should underpin a continued climb higher in profit rates for the company, particularly as N-T disruptions subside,” the analyst wrote.

She further stated, “As COVID-19 headwinds ease, sales and profit trends at LOW are apt to moderate, as spending normalizes, broadly. Our positive call on LOW is currently shorter-term and tactical in nature and hinged upon prospects for investor funds to continue to flow into shares of more economically sensitive enterprises and a compelling relative valuation.”

LOW Price Action: Shares of Lowe’s Companies had risen by 2.77% to $200.89 at the time of publication Thursday.

(Photo: Lowe's Companies Inc.)

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.

Related Articles

How Home Depot Is Winning And Could Keep Momentum

Home improvement retailer Home Depot Inc (NYSE: HD) reported first-quarter earnings that showed strength in many areas. Analysts sized up the earnings in recent updates and included several price target increases.  read more

Why This Analyst Is More Bullish On Home Depot Than Lowe's

Home improvement stocks have been on fire in 2020, but one analyst said Thursday that Home Depot Inc (NYSE: HD) is a better play for investors than Lowe’s Companies Inc (NYSE: LOW) heading into 2021. read more

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.  read more

Oppenheimer Weighs In On ITB, DR Horton And Home Depot

On CNBC's "Fast Money," Ari Wald of Oppenheimer spoke about opportunities in the housing space. read more