Deutsche Bank raises target price at Home Depot and Lowe's
Deutsche Bank raised its price target on home improvement retailers Home Depot and Lowe's, saying that many of the leading indicators that it tracked in the sector had begun to look better.
The brokerage said this confirmed its view that trends had likely bottomed.
Deutsche Bank, which raised its price target on Home Depot's stock to $27 from $24, said gross margin trends should be favorable, particularly for Home Depot, due to rational pricing and lower input costs.
It raised the price target on Lowe's stock by $3 to $26.
Weather in the quarter may have had a negative impact, but same-store sales should be at least in line with its forecasts, Deutsche said.
Shares of Home Depot closed at $26.32, while Lowe's closed at $22.74 Monday on the NYSE.