Lowe's (LOW) PT Lowered to $110 at Argus

Argus analyst Chris Graja lowered the price target on Lowe's (NYSE: LOW) to $110.00 (from $120.00) while maintaining a Buy rating.

Analyst comments: "We are reducing our FY20 EPS estimate to $6.00 from $6.40. The reduction reflects the possibility of more inventory repositioning and more investments in staffing and systems to bolster operations and pave the way for profitable growth. The shares are currently trading at an enterprise value of 15-times trailing EBIT. We use 12 as a benchmark for high-quality retailers with growth potential. At a multiple of 14-times our EBIT estimate for FY20, the shares would be worth $109. We believe this is a fair multiple given the company’s potential to significantly raise margins."

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