Lowe’s Received its Third Buy in a Row

By Jason Carr

After Goldman Sachs and Deutsche Bank assigned a Buy rating to Lowe’s in the last month, the company received another Buy, this time from Credit Suisse. Analyst Seth Sigman reiterated a Buy rating on Lowe’s (NYSE: LOW) today and set a price target of $77. The company’s shares opened today at $67.12.

Sigman noted:

“We now see Q3 comps of 2.5% (vs. prior at 3.5% and consensus at 3.1%) and FY16 comps of 3.6% (vs. prior at 4.0% and consensus at 3.9%). Our lowered comps reflect industry data points and trends throughout the quarter.”

According to TipRanks.com, Sigman is a 2-star analyst with an average return of -0.5% and a 37.7% success rate. Sigman covers the Services sector, focusing on stocks such as Cinemark Holdings Inc, Dick’s Sporting Goods, and Container Store Group.

Currently, the analyst consensus on Lowe’s is Moderate Buy and the average price target is $83.29, representing a 24.1% upside.

In a report issued on October 31, Oppenheimer also assigned a Buy rating to the stock with a $80 price target.

Based on Lowe’s’ latest earnings report from July 31, the company posted quarterly revenue of $18.26B and quarterly net profit of $1.17B. In comparison, last year the company earned revenue of $14.36B and had a net profit of $736M.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is neutral on the stock. Most recently, in May 2016, Matthew Hollifield, the SVP Chief Accounting Officer of LOW sold 17,976 shares for a total of $1,422,800.

Lowe’s Cos., Inc. is engaged in the retail sale of home improvement products. It offers products for maintenance, repair, remodeling, home decorating and property maintenance. The company also offers home improvement products in the following categories: appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lighting & fans, outdoor living, windows and doors. Lowe’s was founded in 1946 and is headquartered in Mooresville, NC.