Home Improvement Retailers' Stock Takes Rise
- November 1, 2019
Raising Price Targets for Home Depot and Lowe's
Oppenheimer Analysts have maintained a positive stance toward home improvement retail and leading operators Home Depot (HD) and Lowe’s (LOW), upon a number of key factors, including: solid underlying demand dynamics, significant protections from the threat of online disintermediation, and accommodative share valuations.
So far in 2019, shares of Home Depot and Lowe’s have performed well, with Home Depot recently crossing through our prior price target. Our Analysts closely reviewed key sector specific data and again stress-tested our Home Depot and Lowe's financial models. The Analysts are increasingly optimistic that a recent, meaningful moderation in mortgage rates should prove an incremental sales tailwind within the space and help support further the multiples at which Home Depot and Lowe's trade. Our price targets on Home Depot and Lowe's go to $255 and $145 respectively (from $215 and $135 previously), and we reiterate ratings of outperform on both companies.
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