Lowe’s Companies, Inc. (NYSE: LOW) stock was upgraded to “outperform” from “neutral” at Wedbush, merely based on the growth signals that resulted from the Chief Executive Marvin Ellison’s growth plan for home improvement retailer.
The Wedbush analysts led by Seth Basham had also raised the Lowe’s Companies, Inc. (NYSE: LOW)’s price target from $115 to $135.
Wedbush analysts said in the note that “Labor efficiency drivers are starting to build, such that the Lowe’s Companies, Inc. (NYSE: LOW)’s might be able to hold operating expenses flat, for the next three years, to drive +250 basis points of margin improvement, in a bull case scenario.”
They are still wary of Lowe (LOW)’s goal to reach $370 per square foot, and the operating margins of 12 percent, but the analysts now see upside in it through 2022.
The analysts say Lowe (LOW)’s is closing the same store sales gap with its biggest rival Home Depot Inc. (HD).