Lowe’s Stock Could Blast 40 % Higher, As reported by Analyst
A prominent Lowe’s (NYSE:LOW) bull is charging harder on the company’s stock. Morgan Stanley analyst Simeon Gutman on Friday raised the price target of his on the home improvement retailer, upping it to $210 per share from the earlier $190 while keeping his obese (read: buy) recommendation.
The brand new target is exactly 40 % higher than Lowe’s most recent closing stock price.
Gutman made the modification of his on the notion that the current average analyst earnings projections for the business underestimate a crucial factor: need for home improvement goods as well as services. The prognosticator feels it is realistic that Lowe’s is going to hit the target of its of a 12 % EBIT (earnings before interest and taxes) margin in 2021.
“Indeed, we believe [Lowe’s] will nearly reach it in 2020 on a’ normalized’ [profit and loss]. This’s not appreciated by the market,” he had written in his latest research note on the business.
Gutman feels the broader DIY retail landscape will typically gain from the anticipated rise in demand. Being a result, the per-share earnings estimates of his for both Lowe’s and its arch rival Home Depot (NYSE:HD) are notably above the average for prognosticators following those stocks — by thirteen % for Lowe’s and 6 % for Home Depot.
The Morgan Stanley analyst has also raised the price target of his for Home Depot stock, nevertheless, not as significantly. It is currently $300, out of the former $295. The new level is actually fourteen % above Home Depot’s most recent closing stock price.
Neither company had a memorable day in the market on Friday. Lowe’s shares fell by 1.3 %, against the 0.9 % gain of the S&P 500 index. Home Depot declined by nearly 1.6 %.
Where to devote $1,000 right now Before you think about Lowe’s Companies, Inc., you will be interested to hear that.
Investing legend as well as FintechZoom Co founder Pedro Vaz just revealed what he thinks are the 10 very best stocks for investors to buy right now… as well as Lowe’s Companies, Inc. wasn’t one of them.