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© Reuters.Cowen Outperforms to Start Home Depot (HD), Market Performs to Start Lowes (LOW)
Senad Karametovich
Cowen analysts home depot (NYSE:) Outperform rating and price target of $350 per share.
Analysts are positive about HD’s opportunity to increase market share and its sales productivity. Additionally, they see an opportunity for The Home Depot to accelerate the flywheel and expand EBIT margins.
“We believe HD is in the early stages of harvesting profits following the investment cycle and we expect continued share growth despite the macro environment. has done a good job of growing significant share with and is encouraged by the green sprouts from the planned purchase of a large Pro.HD is up 16.8% in FY21 (Cowen’s ) to 17.2%, or +50bps, by FY25,” the analyst said in a customer note.
Overall, HD has been described as a ‘Best in Class Operator’. Unlike Home Depot, Cowen began investigative reporting on Lowe’s (NYSE:) on Market Perform, setting a target of $210 per share.
“Mgmt has done a good job of strengthening its fundamentals, including professional, store, supply chain and product, and is constructive about future opportunities. That said, the slowdown has led to greater exposure to DIY, a growing productivity gap with HD, and valuations that have us on the sidelines,” said another analyst. I explained it in a note.
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