Courtesy of Benzinga.
Barclays raised its price target on Lowe's Companies, Inc. (NYSE: LOW) Friday from $60 to $70 and maintained an Equal-Weight rating.
Analysts Alan M. Rifkin and Sam Reid attended the Lowe's analyst day in Charlotte, North Carolina on Thursday. Rifkin commented that senior management made a presentation on “corporate initiatives and discussed NT and LT financial targets.”
“The tone of the presentations were optimistic, focusing on Lowe's efforts to improve domestic productivity, building its omni-channel and evaluating growth opportunities in Canada, Mexico and Australia,” according to Rifkin.
The company “articulated that 2014 FY guidance remains unchanged, with targets for sales growth of 4.5-5.0 percent, comps of 3.5-4.0 percent and diluted GAAP EPS of $2.68, implying diluted non-GAAP EPS of $2.65. Our 2014 EPS estimate of $2.65 remains unchanged.”
The company’s CFO, Robert F. Hull, Jr., “indicated that about half of the company's EBIT expansion would be driven by lower SG&A, with the balance coming from deprecation and modest improvements to gross margin. This growth rate effectively implies 2017 EPS of $4.70.
“While we are only forecasting earnings for Lowe's through 2016, we are taking a significantly more conservative approach to the company's earnings profile, with EPS of $3.55 in 2016 – well below the growth rate implied by the company's 2017 target.”
Lowe's Companies recently traded at $65.42, down 0.52 percent.
Latest Ratings for LOW
Date | Firm | Action | From | To |
---|---|---|---|---|
Dec 2014 | Citigroup | Maintains | Neutral | |
Dec 2014 | Barclays | Maintains | Equal-weight | |
Dec 2014 | Morgan Stanley | Maintains | Equal-weight |
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Posted-In: Alan M. Rifkin Barclays Sam ReidAnalyst Color Price Target Analyst Ratings