“We’re waiting for home prices to start trending up, because I think that could drive a multiyear cycle,” said Champine, who has a $27 price target on Lowe’s and a $45 target on Home Depot.
She prefers Home Depot over Lowe’s because it has improved its supply chain and merchanding. But her “absolute favorite” is Lumber Liquidators Holdings, which has a new CEO “who is doing really dramatic things to bring their cost structure down. If we get a multiyear uptrend in remodeling, they really will benefit from that.”
Champine has a “buy” rating and a $26 target on the stock.
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Disclosure information was unavailable for Champine and her company.