Nomura Securities Maintains a 'Neutral' on Lowe's (LOW); Highlights from Analyst Day.

Nomura Securities maintains a 'Neutral' on Lowe's (NYSE: LOW) price target raised from $22 to $25.

Nomura analyst, Aram Rubinson, said, "Management was more focused on executing the ‘dream’ rather than simply dreaming it. Decision-making may now become more fluid. The biggest change we are making to our model is to capex. After spending ~$1.8B in 2011, capex will drop to $1.25B in 2012. That should lift cash flow and the buyback. We raise our 2012 and 2013 EPS estimates to $1.68 (from $1.67) and $1.95 (from $1.80) as a result of the added cash flow. We also lift our 2013 comp to be flat (from -1%). As a result of higher estimates, our target moves to $25 based on 7x our 2013 EBITDA forecast. The LOW story is compelling if its goals come to pass. And admittedly, the downside is still fairly limited."

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 $24.77 yesterday.

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