Jefferies Lowered Price Target on Lowe's Cos. (LOW) Following Q1
Jefferies maintains a Hold rating on Lowe's (NYSE: LOW), and lowered the price target to $68.00 (from $74.00), following Q1 results. LOW reported EPS of $0.70, missing consensus estimates of $0.74. Analyst Daniel Binder says that most retailers would be envious of Lowe's comp, but compared to the expectations it looked light.
Binder commented on LOW, saying, "Mgmt. noted poor weather knocked the company off plan in Q1, but FY16 expectations are unchanged. The bigger concern was the 1- and 2-yr comp gap with HD widened, particularly in April. While flow through from sales growth was in line with internal plan, we think the Street was expecting more. 2H will see some gross margin pressure on freight and SG&A will see some bonus accrual pressure, but overall should see leverage."
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 $68.50 yesterday.