Brian Nagel, an Oppenheimer analyst, sees an 80% rise in Lowe's stock



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Higher-than-expected quarterly revenues and revenues at Lowe's Wednesday could be a watershed for the home improvement company that has been living for years in the shadow of rival Home Depot, according to Brian Nagel, an analyst at Oppenheimer & Associates. Co..

On CNBC's "Squawk Box" on Wednesday, shortly after the good results recorded before the announcement, Nagel said he sees "significant turnaround potential" for a company and an action, "late for years".

Lowe's shares were up sharply in pre-market trading and opened on Wall Street up 12%.

In one

"If I model that, there's more than $ 10 in earnings per share at Lowe.
Mr. Nagel explained that his official price target for Lowe was $ 135 per share.

Nagel thanked retail veteran Marvin Ellison, who left J.C. Penney to become CEO of Lowe 13 months ago, for these encouraging figures. Ellison has also spent decades in executive positions at Home Depot and Target.

"It seems that, under the leadership of the new CEO, Lowe's is organizing and, frankly, if we're right here and it's going on, this action still has a long way to go," Nagel said. .

However, he said investors did not have to choose between the shares of Lowe's and Home Depot.

"Home Depot

a very high quality company; Undervalued stock even with the rebound of yesterday. Lowe & # 39; s

"Two different types of investment vehicles, but I do not think you'd be hurt to own them both here."

On Tuesday, Home Depot shares jumped 4.4% after the company beat estimates with Q2 results.

However, revenues were below expectations and the company also reduced its sales outlook for the year due to concerns over the US-China trade war, which was slowing consumer spending.

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