Deutsche Bank Expects Lowe's To Reiterate Its 2012 Guidance During Upcoming Analyst Day

Lowe's Companies, Inc. (NYSE: LOW) will host an Analyst Day on Thursday for the first time since December 2012, when the company presented a long-term target of achieving a 2015 operating margin of 9.7 percent on annual comps of 4.3 percent through 2015.

"When Lowe's first announced that outlook, it was viewed with much skepticism," Mike Baker of Deutsche Bank wrote in a note on Saturday. The analyst adds that most investors still do not believe the company is on track to achieving its objectives.

Baker notes that Lowe's is on pace to achieve an average comp of 4.3 percent in 2013 and 2014. The analyst also notes that the company demonstrated 110 basis points of operating margin improvements in the third quarter, as margins rose to 8.4 percent from 7.3 percent at the time of its 2012 meeting.

Baker concludes that Lowe's is likely to reiterate its 2015 guidance next Thursday.

Shares are Buy rated with a $68 price target.