Home improvement warehouse operator Lowe's Companies, Inc. ( LOW ) on Friday caught a big upgrade from analysts at Goldman Sachs.
The firm said it boosted its rating on LOW from "Neutral" to "Buy" while lifting its price target from $26 to $28. That new target suggests a 15% upside to the stock's Thursday closing price of $24.34.
A Goldman analyst commented, "We believe that management is embracing the need for meaningful upgrades to the business after years of drift, and that tangible evidence is starting to emerge in store presentation, technology, and marketing." The firm noted, however, that it may take until the second half of 2012 for the company to see meaningful growth trends take hold.
Lowe's shares rose 46 cents, or +1.9%, in premarket trading Friday.
The Bottom Line
Shares of Lowe's ( LOW ) have a 2.34% dividend yield, based on last night's closing stock price of $23.92. The stock has technical support in the $19-$21 price area. If the shares can firm up, we see overhead resistance around the $24-$26 price levels.
Lowe's Companies, Inc. ( LOW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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