Lowe's Is On The Way Up, Morgan Stanley Says
Lowe’s Companies, Inc. (NYSE: LOW) is in the “payoff stage of its transformation” and remains a strong buy, Morgan Stanley said in a note on Wednesday. The firm said that it favors Lowe’s over Home Depot Inc (NYSE: HD) because Lowe’s has shown it can execute and has “more margin upside potential.”
Regarding Q4 earnings, Morgan Stanley said the results were better than expected with expanding EBIT margin in 2015.
Most importantly, however, Morgan Stanley said Lowe’s is finished executing its transformation plan, allowing the company to capitalize on the tailwinds in the home improvement space. Notably, during its Northeast store visits, Morgan Stanley noted it saw spring merchandise “being set much earlier than usual in anticipation of a strong selling season.”
The stock price was bouncing around sharply Wednesday morning, recently trading down 0.5 percent at $74.25.
Latest Ratings for LOW
Feb 2015 | Jefferies | Maintains | Hold | |
Jan 2015 | Morgan Stanley | Upgrades | Equal-weight | Overweight |
Jan 2015 | Deutsche Bank | Maintains | Buy |
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