Oppenheimer upgraded LOW to “outperform” and hiked its price target to $305
Lowe’s Companies Inc (NYSE:LOW) stock is up 1.2% ahead of today’s trading, after a bull note from Oppenheimer. The analyst upgraded shares of the home improvement retailer to “outperform” from “market perform” and raised its target price to $305 from $230, citing promising long-term fundamentals and demand tailwinds following the Federal Reserve’s interest-rate cut.
Current analyst sentiment doesn’t quite match LOW’s price action. While the stock is up nearly 18% since the beginning of the year, 14 of 30 covering brokerages rate the equity a tepid “hold.” This leaves plenty of room for more upgrades.
On the charts, Lowe’s stock is flirting with its Dec. 13, 2021 all-time high of $263.31, closing yesterday’s session at $262.29. If the security’s pre-market price action stays true, then there’s a chance for a new peak at the open. The stock is also on track to add to its 17.9% year-to-date lead and a 24.6% year-over-year gain.
Options look like an affordable way to speculate. Lowe’s stock’s Schaeffer’s Volatility Index (SVI) of 20% ranks in the low 8th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment. What’s more, options traders are in luck, as the stock’s Schaeffer’s Volatility Scorecard (SVS) sits at 85 out of 100, indicating LOW exceeded options traders’ volatility expectations over the past year, which is a boon for premium buyers.