Market Update (NYSE:LOW): Lowe’s wins over Canada’s Rona with renewed takeover offer

[Reuters] – U.S. home improvement retailer Lowe’s Cos Inc agreed to buy Canada’s Rona Inc in a deal valued at C$3.2 billion ($2.28 billion), winning over Rona’s board with a far higher offer than its previous unsolicited bid more than three years ago that was opposed by the company and politicians in Quebec. The deal will put Lowe’s in a better position to compete with traditional rival Home Depot Inc in Canada’s more-than $30 billion home improvement market. Read more on this. Lowe’s Companies , Inc. (LOW) , with a current value of $60.98B, started trading this morning at $71.38. Looking at the equity, the company’s one day range is $66.50 to $71.38 and has traded between $64.22 and $78.13 over the past 12 months. LOW shares are currently priced at 21.72x this year’s forecasted earnings, which makes them relatively expensive compared to the industry ’s 9.92x earnings multiple. The company pays shareholders $1.12 per share annually in dividends, yielding 1.56%. Consensus earnings for the current quarter by the 25 sell-side analysts covering the stock is an estimate of $0.59 per share, which would be $0.13 better than the year-ago quarter and a $0.00 sequential decrease. Investors should also note that the full-year EPS estimate of $3.30 is a $0.60 better when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $13.07 Billion. If realized, that would be a 4.23% increase over the year-ago quarter. In terms of ratings, Wedbush upgraded LOW from Neutral to Outperform (Jun 15, 2015). Previously, Atlantic Equities Initiated LOW at to Neutral. The average price target for LOW shares by the analysts covering it is $83.48, which is 16.95% above where the stock opened. See more in (NYSE:LOW) Similar Articles: Market Update: Lowes Companies Inc (NYSE:LOW) – Lowe’s Companies, Inc. Names Sandra B. Cochran To Board Of Directors Stock Update: Lowes Companies Inc (NYSE:LOW) – Google Partners With Lowe’s For New DIY Tools Market Update: Lowes Companies Inc (NYSE:LOW) – Lowe’s Companies, Inc. Declares Cash Dividend