The firm set a price target of $58 for the home improvement retailer, up from its previous mark of $51.
Jefferies also reiterated its "hold" rating and increased the annual EPS earnings estimate for fiscal 2016 to $3.01 from $2.98.
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The firm said Lowe's is benefiting from recovery in remodel spending, which is still below long-term averages.
"We are encouraged by home price appreciation, which we believe has been the biggest driver of home improvement spending," said analysts at Jefferies. "Given the relatively small multiple gap between the two companies, we still prefer Home Depot Inc. (HD) to Lowe's given its relative outperformance."
Shares of Lowe's Companies are up 0.31% to $58.18 in late morning trading on Wednesday.
Separately, 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, solid stock price performance, impressive record of earnings per share growth, increase in net income 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."