Goldman's reason for the upgrade was Lowe's improved margins despite a time when "many retailers are likely to experience decelerating growth." After the news the stock gained +2% in the premarkets. The retail stock has gained +10.2% over the past month.
Along with the buy recommendation, Goldman estimated that the retailer's EPS would jump 18% in the third quarter and 31% in the fourth quarter. Lowe's will release its earnings report on Nov. 15.
Despite consumer spending being down,
has announced that it will maintain its buy rating of
(WMT - Get Report)
. They have also reiterated their price target of $64, for the retail stock.
"[Wal-Mart] is intensely focused on fixing the mistakes made in the U.S. over the past two quarters by adding inventory back to the assortment, reinstating Action Alley, and returning to an EDLP pricing strategy. The company's outlook for 2H10 is cautious as the health of its core customer has not improved. However, correcting the company-specific issues at Wal-Mart U.S. should yield topline improvement in 2H10, and management's emphasis on the productivity loop gives us confidence that WMT can make our 2010 EPS estimate of $4.06," Citi experts announced.
Wal-Mart will release its earnings report on Nov. 16, and shareholders will discover if Citi's recommendation holds true.