Lowe’s Stock Could Blast 40 % Higher, As reported by Analyst
A prominent Lowe’s (NYSE:LOW) bull is actually 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 previous $190 while maintaining his obese (read: buy) recommendation.
The new target is roughly 40 % higher than Lowe’s most recent closing stock price.
Gutman made the modification of his on the perception that the present typical analyst earnings projections for the business enterprise underestimate an important factor: demand for home improvement goods and services. The prognosticator feels it is reasonable that Lowe’s will hit the target of its of a twelve % EBIT (earnings before interest and taxes) margin in 2021.
“Indeed, we think [Lowe’s] will almost reach it in 2020 on a’ normalized’ [profit and loss]. This is not valued by the market,” he published in his latest research note on the business.
Gutman thinks the broader DIY list landscapes will generally reap some benefits from the anticipated increase in demand. As 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 six % for Home Depot.
The Morgan Stanley analyst has also raised his price target for Home Depot stock, though not as significantly. It’s now $300, out of the former $295. The new level is actually 14 % above Home Depot’s most recent closing stock price.
Neither business 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 almost 1.6 %.
Where to devote $1,000 right now Before you decide to look into Lowe’s Companies, Inc., you’ll want to listen to this.
Investing legend as well as FintechZoom Co founder Pedro Vaz just revealed what he believes are the 10 greatest stocks for investors to get right now… as well as Lowe’s Companies, Inc. was not one of them.