Shares of Lowe's (LOW) - Get Lowe's Companies Inc. Report were on the rise Wednesday after an analyst upgrade of the home improvement giant, which is in the midst of a big turnaround plan as it scrambles to compete with rival Home Depot (HD) - Get Home Depot Inc. (The) Report .
Lowe's stock priced edged up .30% to $112.54 after Credit Suisse analyst Seth Sigman raised his rating on Lowe's to outperform from neutral, leveling off a bit after rising 1.18% in premarket trading.
The Credit Suisse analyst also hiked his price target on Lowe's stock to $129 a share, up from $114.
The vote of confidence by Credit Suisse is the latest in a series of upgrades by analysts of Lowe's amid an ambitious turnaround plan by CEO Marvin Ellison, who left J.C. Penney last year to take the helm of the then flagging home improvement company.
Under Ellison, Lowe's has closed more than 40 underperforming stores while cutting thousands of assembly jobs at stores that involved putting together grills and patio furniture, opting to contract instead with third party vendors.
Ellison, who was a top executive at Home Depot, has also brought in other executives from his former employer, whose stock price continues to outperform Lowe's.
Home Depot's stock is now trading at more than $232 a share, compared to its close at $187.23 last Nov. 7, for a gain of more than 24%.
By contrast, Lowe's has seen a roughly 12% increase in its stock price from a year ago, when it was trading at $100.60 a share.
In recent months, analysts at Piper Jaffray and UBS have also issued bullish reports on Lowe's.