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Barclays Cuts Estimates for Lowe’s; Prefers Home Depot (LOW, HD)

By Dividend.com July 13, 2012, 09:15:36 AM EDT

Home improvement warehouse operator Lowe's Companies, Inc. ( LOW ) late Thursday caught some tepid commentary from analysts at Barclays Capital.

The firm maintained its "Equalweight" rating and $30 price target on LOW, which suggests a 13% upside to the stock's Thursday closing price of $26.57.

Barclays lowered its earnings estimates for the company, however, citing pricing and margin concerns. The analyst commented, "We are lowering our 2Q and full-year 2012 EPS estimates each by $0.03, to $0.74 and $1.85, respectively. In our view, weather-driven pull-forward from 2Q to 1Q is likely to be more pronounced than we previously anticipated."

The firm also noted it prefers competitor Home Depot ( HD ), which it rates as "Overweight."

Lowe's shares posted modest gains in premarket trading Friday.

The Bottom Line
Shares of Lowe's ( LOW ) have a 2.41% dividend yield, based on last night's closing stock price of $26.57. The stock has technical support in the $23-$24 price area. If the shares can firm up, we see overhead resistance around the $28-$29 price levels.

Lowe's Companies, Inc. ( LOW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: HD, LOW



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