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Investing.com - Barclays (LON:BARC) maintained its Equalweight rating on Lowe’s (NYSE:LOW) stock while raising its price target to $267.00 from $245.00, citing benefits from recent acquisitions. The home improvement retailer, currently trading at $257.14 with a market capitalization of $144.5 billion, shows technical indicators suggesting overbought conditions according to InvestingPro analysis.
The price target increase reflects Barclays’ updated earnings estimates that incorporate accretion from Lowe’s acquisitions of Architectural Digest Group (ADG) and Foundation Building Materials (NYSE:FBM).
For fiscal year 2025, Barclays raised its earnings per share estimate to $12.26 from $12.16, attributing approximately $0.05 of the increase to the ADG acquisition while keeping comparable sales forecasts relatively unchanged.
Looking ahead to fiscal year 2026, the firm maintained its comparable sales growth projection of 3% while increasing its EPS estimate to $13.34 from $13.10, noting that FBM is expected to contribute approximately $0.60 in gross EPS impact, though this benefit is largely offset by higher interest expense and share count.
Barclays’ new price target is based on a 20x multiple applied to its updated fiscal year 2026 EPS estimate, with the firm also raising its fiscal year 2027 EPS forecast to $14.72 from $14.28 while maintaining its comparable sales growth projection of 3.5%.
In other recent news, Lowe’s has seen several updates regarding its stock price targets from various analyst firms. Wells Fargo (NYSE:WFC) increased its price target for Lowe’s to $290, citing a strong second quarter with a notable 4.7% growth in comparable sales for July and an EBIT beat. RBC Capital also raised its price target to $260, noting modest adjustments following Lowe’s recent results and the announcement of its acquisition of Foundation Building Materials (FBM), expected to impact financials in early 2026. Bernstein SocGen Group adjusted its price target to $279, highlighting Lowe’s strategic expansion into the Pro market, despite some concerns about the company’s readiness for complex Pro customers. DA Davidson set a new target of $266, emphasizing the company’s improved sales and guidance that surpassed expectations, alongside the FBM acquisition. UBS raised its price target to $325, supported by Lowe’s gains in the DIY segment, which had previously faced challenges. These developments reflect a generally positive outlook from analysts, each maintaining their respective ratings on the stock.
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