NEW YORK (TheStreet) -- Shares of Lowe's Cos. (LOW) were gaining, up 0.39% to $67.79 in early market trading Tuesday, after analysts at BMO Capital Markets raised their rating on shares of the home improvement retailer this morning.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says, "Managing Director at BMO Capital Wayne Hood is the best in this group and if he likes it, I like it."
BMO upgraded the Lowe's to "outperform" from "market perform" with a higher price target of $81 from $73.
The firm cited the stronger housing and overall economic activity in the Southeastern states, where Lowe's has "a larger store footprint."
"Importantly, the company is poised to have strong earnings flow through as it holds payroll hours flat, tightly manages indirect costs, leverages marketing and fixed cost expense,and benefits from a lower D&A expense rate on moderating annual capital spending of $1.2 billion," BMO wrote in a note this morning.
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, notable return on equity 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."