Lowe’s Stock Could Blast forty % 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 do retailer, upping it to $210 per share from the prior $190 while maintaining his obese (read: buy) recommendation.
The brand new target is roughly forty % higher than Lowe’s most recent closing stock price.
Gutman made the revision of his on the notion that the present average analyst earnings projections for the business enterprise underestimate a critical factor: demand for home improvement goods as well as services. The prognosticator feels it is realistic that Lowe’s will hit the goal of its of a twelve % EBIT (earnings before interest and taxes) margin in 2021.
“Indeed, we feel [Lowe’s] will almost reach it in 2020 on a’ normalized’ [profit as well as loss]. This’s not appreciated by the market,” he wrote in the latest research note of his on the company.
Gutman feels the broader DIY list landscape will generally benefit 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 six % for Home Depot.
The Morgan Stanley analyst in addition has raised the price target of his for Home Depot stock, nevertheless, not as dramatically. It’s currently $300, out of the former $295. The new level is actually fourteen % above Home Depot’s most recent closing stock price.
Neither business had a memorable day in the market place 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 %.
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