Lowe’s removed from ‘Tactical Underperform’ list, target raised at Evercore

Evercore ISI analyst Greg Melich raised the firm’s price target on Lowe’s (LOW) to $250 from $225 and keeps an In Line rating on the shares, which the analyst is removing from the firm’s “Tactical Underperform” list as the earnings event has played out. Despite beating expectations in Q2, Lowe’s lowered their EPS guidance by about 3% to $11.80 at the midpoint, following Home Depot’s (HD) lead last week, the analyst tells investors. The analyst day in December will provide an updated earnings algorithm, along with likelihood of EPS turning and growing back to $13 or beyond, adds that the analyst, whose base case target of $250 assumes a market multiple on recovering 2025 earnings of $13 per share.