Jefferies Cuts Price Target on Lowe's Cos. (LOW) to $69 Following 3Q
Jefferies maintained a Hold rating on Lowe's Cos. (NYSE: LOW), and cut the price target to $69.00 (from $81.00), following the company's 3Q earnings report. EPS of $0.88 missed expectation of $0.96. FY17 adjusted EPS guidance was reduced to $3.92 from $4.01.
Analyst Daniel Binder commented, "Comp sales grew below the industry again as traffic slowed more than expected – DIY softened more than Pro. This led to a 330 bp comp gap with HD and a widening gap on a 2-year basis vs. LQ. Share loss prompted a refinement of promotions and a bounce in Oct. sales. Mgmt. comp guidance for FY17 implies a wide range of expectations for the Q4 comp (0 to +4.5%) against tough comparisons in LY. Relative underperformance keeps us Hold rated."
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Shares of Lowe's closed at $67.02 yesterday.