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Analysts Raise Target Price for Lowe’s after Strong 3Q17 Earnings

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Target price

As of November 21, Lowe’s Companies (LOW) was trading at $80.59. On the same day, analysts were expecting Lowe’s stock price to reach $86.68 in the next 12 months, which represents a return potential of 7.6%.

The strong 3Q17 SSSG (same-store sales growth), revenue, and earnings appear to have increased analysts’ confidence. Also, the announcement that recovery efforts after the devastation caused by the hurricanes will continue into 2018 could have compelled analysts to raise their target prices. After the announcement of 3Q17 earnings, Royal Bank of Canada has raised its target price from $84 to $89 while Telsey Advisory Group increased its target price from $79 to $83.

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Analysts’ ratings

Of the 32 analysts that follow Lowe’s, 56.3% are recommending a “buy,” 40.6% are recommending a “hold,” and 3.1% are favoring a “sell.” Royal Bank of Canada has an “outperform” rating on Lowe’s while Telsey has recommended a “Market Perform” rating. Currently, Lowe’s stock price is lower than analysts’ target price.

Peer comparisons

  • Home Depot (HD): Of the 33 analysts that follow HD, 72.7% are recommending a “buy,” and the remaining 27.3% are favoring a “hold.” In the next 12 months, analysts expect the company’s stock to reach $178.01, which represents a return potential of 3.0%.
  • Williams-Sonoma (WSM): Of the 27 analysts that follow WSM, 18.5% are recommending a “buy,” 63.0% are recommending a “hold,” and 18.5% are recommending a “sell.” In the next 12 months, analysts are expecting the company’s stock price to reach $49.35, which represents a return potential of 8.3%.
  • Bed Bath & Beyond (BBBY): Of the 23 analysts that follow BBBY, 4.3% are recommending a “buy,” 65.2% are recommending a “hold,” and 30.4% are recommending a “sell.” In the next 12 months, analysts are expecting the stock price to reach $24.06, which represents a return potential of 18.7%.
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