What Wall Street Analysts Recommend for Lowe’s
Analysts’ target price
As of November 13, Lowe’s Companies (LOW) was trading at $77.53. On the same day, analysts were expecting the company’s stock price to reach $85.68 in the next 12 months, which represents a return potential of 10.5%.
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Although Lowe’s failed to meet expectations in 2Q17, analysts have raised their target prices due to the expectation of an increase in sales from recovery efforts after the devastation caused by hurricanes Harvey and Irma. On November 12, J.P. Morgan raised its target price from $83 to $87. On November 6, Royal Bank of Canada also increased its target price from $81 to $84.
The target price and return potential for Lowe’s peers are as follows.
- Home Depot (HD): target price of $173.94 with return potential of 5.2%
- Bed Bath & Beyond (BBBY): target price of $24.29 with return potential of 23.2%
- Williams-Sonoma (WSM): target price of $50.60, which represents a fall of 1.5% from its current stock price
Of the 32 analysts who follow Lowe’s, 56.3% are recommending a “buy,” 40.6% are recommending a “hold,” and the remaining 3.1% are recommending a “sell.” On November 6, KeyBanc initiated coverage with an “overweight” rating and a target price of $98.
Currently, Lowe’s stock price is lower than analysts’ target price. However, this difference doesn’t mean an automatic “buy.” Investors have to analyze various parameters before making any investment decisions.