Home improvement warehouse operator Lowe's Companies, Inc. ( LOW
Analysts at Barclays Capital cut their price target for LOW to $26 from $28. Still, that new target represents a healthy 31% potential upside to the stock's Tuesday closing price of $19.92. The firm noted Lowe's would likely reported mixed sales trends for the second quarter, and maintained its "Overweight" rating.
Meanwhile, analysts at Jefferies & Co. cut their price target on LOW to $24. The firm also lowered its earnings estimates for the company, citing a weaker sales outlook, but maintained its "Buy" rating.
Lowe's shares fell 24 cents, or -1.2%, in premarket trading Wednesday.
The Bottom Line
We had removed shares of LOW from our recommended list back on May 29, 2009, when the stock was trading at $19.02. The company has a 2.21% dividend yield, based on last night's closing stock price of $19.92. The stock has technical support in the $18 price area. If the shares can firm up, we see overhead resistance around the $22 price level. We would remain on the sidelines for now.
Lowe's Companies, Inc. ( LOW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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