Analysts: ~76% Rate Lowe’s as a ‘Buy’ before Its Q1 2018 Earnings



Target price

On May 17, Lowe’s (LOW) was trading at $85.47 per share. On that day, analysts expected the company’s stock price to reach $105.24 for a return potential of 23.1%.

On April 24, Wells Fargo initiated its coverage of Lowe’s stock with an “outperform” rating and set the target price at $100.00. On March 5, Credit Suisse cut its target price from $116.00 to $111.00.

Since the announcement of Lowe’s earnings for the fourth quarter of 2017, Deutsche Bank, UBS, Raymond James, and RBC have cut their target prices for Lowe’s. During the same period, SunTrust Robinson and BMO have increased their target prices.

The target prices and return potential metrics of Lowe’s peers follow:

  • Home Depot (HD): target price of $211.47 with a return potential of 14.1%
  • Williams-Sonoma (WSM): target price of $53.21 with a return potential of 9.1%.
  • Bed Bath & Beyond (BBBY): target price of $17.76, which represents a fall of 0.5% from its current stock price
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Analysts’ recommendations

Of the 33 analysts that follow Lowe’s (LOW), 75.8% recommended a “buy,” and 24.2% recommended a “hold.” None of the analysts recommended a “sell” for the stock. 

Lowe’s stock price tends to move in tandem with analysts’ target prices. Currently, Lowe’s stock is trading below analysts’ 12-month target price. However, this doesn’t mean an automatic “buy.” Investors are advised to study analysts’ estimates discussed in this series before making any investment decisions.


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