The firm upgraded the home improvement retailer to "outperform" from "neutral" with a higher $82 price target from its prior $80.
Analysts at Wedbush said the positive drivers for Lowe's should continue, if not increase, going forward if interest rates stay low.
"LOW is harvesting benefits from years of investments and benefitting from increasing share loss at Sears Holdings Corp. (SHLD) and macro tailwinds," the firm noted.
The firm added that its discounted valuation gives an opportunity for greater upside compared to peer Home Depot (HD).
Mooresville, NC-based Lowe's is a home improvement retailer operating 1,745 stores, consisting of 1,712 stores domestically, and 31 stores in Canada as well as two stores in Mexico.
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 growth in earnings per share, increase in net income, revenue growth, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."