Home Depot and Lowe's upgraded to buy at Loop Capital

Loop Capital Markets on Wednesday upgraded home improvement retailers Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) to ‘buy’ from ‘hold’ following recent store checks and management conversations.
LOOP’s price target on HD is raised from $360 to $460, and for Lowe’s from $250 to $300 as the Fed moves to lower interest rates.
LOOP’s F2024 revenue estimate is unchanged, despite a likely lift from recent storm damage. The storms May well disrupt current quarter sales, but LOOP expects investors to look beyond this to a future demand lift.
LOOP is pleased with the quick resolution to the port strike, as it saw a prolonged strike as a material risk, and raises F2025 estimates on the back of recent extreme weather and an easing rate cycle. LOOP’s F25 EPS estimate for HD is 44 cents ahead of consensus.
For Lowe’s LOOP is six cents above consensus.
The brokerage is more bullish on Home Depot (HD) given the incremental growth opportunity it sees following the SRS acquisition. LOOP expects HD’s long-term growth to accelerate into the high-single digits, compared to LOW (LOW) in the mid-single digits.
On a YTD basis, Home Depot (HD) and Lowe’s (LOW) have advanced 19.5% and 22.8% respectively.
Oppenheimer recently upgraded Lowe’s Companies (LOW) to an Outperform rating after having it set at Market Perform.

Tags: LOW

Home Depot and Lowe’s upgraded to buy at Loop Capital