New York, NY, November 27, 2006--Banc of America Securities upgraded its rating on home improvement retailer Lowe's Companies to buy from neutral, with a $43 price target.
The firm said, "Fundamentals have not bottomed, but valuation may have as we believe the market is beginning to look through the potential trough. We see evidence of that as its price-to-earnings ratio has stopped moving lower despite weak sales and negative housing data points. That tells us embedded expectations are low and it would take a significant negative catalyst to move the stock lower from here,"
On buy rated Home Depot, the firm lifted its price target to $45 from $42.
