Lowe’s price target raised to $225 from $215 at Loop Capital

Loop Capital analyst Laura Champine raised the firm’s price target on Lowe’s (LOW) to $225 from $215 but keeps a Hold rating on the shares. The company’s Q2 earnings beat was “modest” and its top-line growth is expected to decline below the comp trend after the sale of the Canadian business, though this is likely more than compensated for by higher margins near- and long-term, the analyst tells investors in a research note. The declining sales growth is likely to limit stock appreciation potential over the next 12 months given the current forward earnings multiple of 15-times, though Lowe’s stock is still more attractive than Home Depot (HD) at 11-times enterprise value to expected FY24 EBITDA vs. Home Depot’s 14-times multiple, Loop added.