NEW YORK (TheStreet) -- Shares of Lowe's and Home Depot are rising after Goldman Sachs became more upbeat on both companies. The firm said that the housing sector's improved outlook made the stocks more attractive. WHAT'S NEW: Goldman Sachs analyst Matthew Fassler upgraded Lowe's to Buy from Neutral and raised his price target on the shares to $63 from $58. He increased his price target on Home Depot to $103 from $100 but kept a Neutral rating on the stock. Fassler increased his estimates for both companies to reflect his greater optimism about the housing sector in 2015-2016. The analyst said that his upgrade of Lowe's also reflects his more upbeat view of retail stocks linked to housing, given the lack of cyclical challenges facing the housing market. Furthermore, Lowe's can increase its margins significantly, as they are much further below their peak than most of the company's peer, according to Fassler. Meanwhile, the big box, Do-It-Yourself retailers face little competition from Amazon , added the analyst. PRICE ACTION: In early trading, Lowe's climbed 0.5% to $56.09, while Home Depot rose fractionally to $96.48. Reporting by Larry Ramer.
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