NEW YORK (TheStreet) -- Shares of Lowe's Companies, Inc. (LOW) are up 0.52% to $46.32 as Morgan Stanley (MS) initiated coverage with an "equalweight" rating and a $50 price target as it cautioned that there may be little upside to the price target.
In its note, the firm said Lowe's is a "reasonable" way to get in on further gains in the housing sector" and pointed to the company's "ability to achieve, and perhaps surpass, a 10% EBIT margin should mean an EPS growth rate in the high-teen to low 20s over the next few years."
TheStreet Ratings team rates LOWE'S COMPANIES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LOWE'S COMPANIES INC (LOW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: