UBS Raises Price Target on Lowe's Cos. (LOW) to $88 Following 1Q; Reiterates Buy

UBS maintained a Buy rating on Lowe's Cos. (NYSE: LOW), and raised the price target to $88.00 (from $86.00),following the company's 1Q earnings report.

Analyst Michael Lasser commented, "There was a lot to like about LOW's 1Q. Its 1Q'16 comp of 7.2% exceeded our 4.5% forecast & the cons. est. of 4.7%. Notably, LOW's US comp exceeded that of HD for the first time since 2Q'10. Interestingly, HD outperformed LOW in Feb, while LOW outperformed HD in March & April. Further, we think LOW's 5.1% comp transaction growth demonstrates the sheer volume of footsteps it's driving through the store. LOW's pro segment sales grew nearly double digits in 1Q. Assuming this segment grew 9% and reflects 30% of overall sales, this suggests that LOW's DIY business still grew 6.5%-7.0%. Taken together, this is one of the most impressive sales performances we have seen from LOW in some time. By proving it's able to have banner quarters as it did in 1Q, we think it deserves a premium multiple. We remain constructive on its shares."

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 $78.60 yesterday.

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