Nomura Securities Lowers PT and Estimates on Lowe's (LOW); Q2 Disappoints, But We Still Believe
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Price: $41.46 --0%
Rating Summary:
7 Buy, 11 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 17 | New: 21
Rating Summary:
7 Buy, 11 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 17 | New: 21
Trade LOW Now!
Nomura Securities maintains a 'Buy' on Lowe's (NYSE: LOW) price target of $32.00 (from $34.00).
Analyst, Aram Rubinson, said, "LOW’s Q2 EPS of $0.64 fell short of our $0.68 estimate. Comps of -0.4% were below our flat outlook while operating margin compression of 130 bps exceeded our 70 bps projection. Several factors are modestly comforting after the disappointing results. Q2 was challenged by the same factors that flattered Q1: the fact that 2012 began a week later due to last year’s 53rd week, and the warm weather pull-forward of seasonal demand into Q1. Our EBIT margin of 7.0% is 60 bps lower than previously modeled and leads to $1.68 EPS (vs. $1.86). Our ’13 estimate of $2.15 is $0.10 lower due to a lower base. Our price target of $32 is lower with estimates. We still believe that time is on LOW’s side as it is in a good industry and share count reduction could provide cloud cover until execution improves."
For an analyst ratings summary and ratings history on Lowe's click here. For more ratings news on Lowe's click here.
Shares of Lowe's closed at $26.26 yesterday, with a 52 week range of $18.28-$32.29.
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Analyst, Aram Rubinson, said, "LOW’s Q2 EPS of $0.64 fell short of our $0.68 estimate. Comps of -0.4% were below our flat outlook while operating margin compression of 130 bps exceeded our 70 bps projection. Several factors are modestly comforting after the disappointing results. Q2 was challenged by the same factors that flattered Q1: the fact that 2012 began a week later due to last year’s 53rd week, and the warm weather pull-forward of seasonal demand into Q1. Our EBIT margin of 7.0% is 60 bps lower than previously modeled and leads to $1.68 EPS (vs. $1.86). Our ’13 estimate of $2.15 is $0.10 lower due to a lower base. Our price target of $32 is lower with estimates. We still believe that time is on LOW’s side as it is in a good industry and share count reduction could provide cloud cover until execution improves."
For an analyst ratings summary and ratings history on Lowe's click here. For more ratings news on Lowe's click here.
Shares of Lowe's closed at $26.26 yesterday, with a 52 week range of $18.28-$32.29.
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