Lowe’s (NYSE:LOW) management team laid out "a solid game plan" at today’s analyst day, says Gordon Haskett analyst Chuck Grom, but not enough to detract from his preference for chief rival Home Depot (NYSE:HD).
"We walked away from the meeting incrementally more positive on the prospects for the Lowe’s turnaround [but] still prefer Home Depot, particularly if the housing waters continue to get choppy," Grom writes.
The analyst says he was a bit surprised that LOW took such an optimistic approach to its outlook, particularly on the top line, and the company's 3% 2019 comps view "could be a stretch" depending on how the 2019 home improvement backdrop plays out; LOW's planned $6B-$7.5B in share buybacks also were more than expected.
The firm rates LOW as a Hold with a $99 price target, after downgrading the stock last month.
Source: Bloomberg First Word
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