Lowe's Companies Inc LOW:NYSE

Last Price$177.36NYSE Previous Close - Last Trade as of 7:00PM ET 7/01/22

Today's Change+2.69(1.54%)
Bid (Size)$176.84 (1)
Ask (Size)$177.96 (2)
Day Low / High$174.64 - 178.59
Volume3.1 M

Research Alert: CFRA Retains Buy Opinion On Shares Of Lowe's Companies, Inc.

10:50AM ET 5/18/2022 MT Newswires
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Recession may loom in 2023, but we think home improvement may be more resilient versus other retailers. Looking out to 2023, the JCHS Leading Indicator of Remodeling Activity (LIRA) forecasts 19.7% Y/Y spending on home improvement. While the LIRA may be optimistic, our sales estimates for LOW are $97.8b in FY 23 (Jan.) and $99.4b in FY 24, following $96.2b in FY 22. Factoring a narrower risk premium, we lower our target by $40 to $235, a forward P/E of 17.6x, below the 5-year historic average of 18.3x. We keep our FY 23 EPS estimate at $13.35 and lower FY 24's by $0.15 to $14.25. LOW posts Q1 FY 23 EPS of $3.51, a $0.29 consensus beat even though sales were slight miss at $23.7b, as LOW stated cold weather April delayed spring sales expected in Q2 FY 23. Same store comp sales were negative 4.0%. LOW did see slower demand from Do-It-Yourself (DIY) that is 75%-80% of total sales, while PRO segment sales was strong. LOW is guiding gross margins to be up slightly in FY 23 and were 34.0% in Q1 FY 23.