Lowe's (LOW) PT, Estiamtes Raised at Piper Jaffray on Solid Q3

Piper Jaffray analyst Peter J. Keith raised estimates and his price target on Lowe's (NYSE: LOW) to $66.00 (from $51.00) following Q3 results, but stopped short of upgrading the stock and maintained a Neutral rating.

Keith commented, "We are maintaining our Neutral rating on valuation but increasing our PT to $66 (from $51) on LOW following a solid beat-and-raise Q3 that saw EPS of $0.59 above consensus of $0.58 and guidance raised by $0.05. LOW is clearly doing a better job of executing, in our view, and is now beginning to see more meaningful SG&A leverage. However, with the large move in the stock price today we are concerned that much of the execution improvement is already priced in at this level. We remain constructive on remodeling spending overall and the outlook to housing but we need to find a better entry point to become more constructive on LOW. We have increased our multiple to 18x (from 17x) due to a better earnings outlook and rolled our PT forward to 2016 from 2015."

The firm raised FY 2014 EPS from $2.63 to $2.68 and FY 2015 EPS from $2.99 to $3.17.

For an analyst ratings summary and ratings history on Lowe's click here. For more ratings news on Lowe's click here.

Shares of Lowe's closed at $62.26 yesterday.

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