BNP Paribas Exane cuts Lowe’s stock price target to $207

Published 22/05/2025, 18:16
BNP Paribas Exane cuts Lowe’s stock price target to $207

Lowe’s, based in Mooresville, North Carolina, operates as a home improvement retailer, offering products for maintenance, repair, remodeling, and decorating. The company maintains a strong financial profile with a GOOD overall health score according to InvestingPro, and has impressively raised its dividend for 41 consecutive years, currently yielding 2.02%. The company has been actively working to enhance its offerings and market reach, but these strategic moves are being weighed against external economic pressures and industry competition. Get comprehensive insights with InvestingPro’s detailed research report, available for Lowe’s and 1,400+ other top US stocks.

Lowe’s, based in Mooresville, North Carolina, operates as a home improvement retailer, offering products for maintenance, repair, remodeling, and decorating. The company maintains a strong financial profile with a GOOD overall health score according to InvestingPro, and has impressively raised its dividend for 41 consecutive years, currently yielding 2.02%. The company has been actively working to enhance its offerings and market reach, but these strategic moves are being weighed against external economic pressures and industry competition. Get comprehensive insights with InvestingPro’s detailed research report, available for Lowe’s and 1,400+ other top US stocks.

The analyst’s concerns are rooted in Lowe’s greater reliance on the do-it-yourself (DIY) market, which is experiencing slower growth compared to Home Depot (NYSE:HD)’s professional contractor segment. With Home Depot reaping the benefits of its investments in this area, the performance gap between the two companies is expected to widen.

The broader economic context was also a factor in the analyst’s outlook. With interest rates continuing to rise and the housing market showing signs of a slowdown, the analyst sees additional headwinds for retailers in the home improvement sector. The ongoing imposition of tariffs adds another layer of uncertainty, giving the analyst pause regarding the potential for macroeconomic factors to provide any relief to the industry.

Lowe’s, based in Mooresville, North Carolina, operates as a home improvement retailer, offering products for maintenance, repair, remodeling, and decorating. The company maintains a strong financial profile with a GOOD overall health score according to InvestingPro, and has impressively raised its dividend for 41 consecutive years, currently yielding 2.02%. The company has been actively working to enhance its offerings and market reach, but these strategic moves are being weighed against external economic pressures and industry competition. Get comprehensive insights with InvestingPro’s detailed research report, available for Lowe’s and 1,400+ other top US stocks.

In other recent news, Lowe’s Companies Inc (NYSE:LOW). reported first-quarter earnings that generally met expectations, with a noted 1.7% decline in comparable store sales due to weather-related challenges. However, the company’s professional contractor segment showed robust growth, balancing out some of the DIY segment’s weakness. Lowe’s acquisition of Associated Distributors Group (ADG) marks its entry into the new home construction market, expected to add $875 million in revenue in the second half of the fiscal year, though not significantly impacting growth immediately. Analysts have varied in their outlooks, with TD Cowen maintaining a Hold rating and a $245 price target, while RBC Capital adjusted its price target slightly down to $242, citing concerns about demand and tariff costs. In contrast, Truist Securities and Bernstein have raised their price targets to $264 and $266, respectively, with both firms maintaining positive ratings due to confidence in Lowe’s growth potential. KeyBanc also reaffirmed an Overweight rating with a $266 price target, highlighting the strength in the professional segment and potential for share price appreciation with a housing market rebound. Despite some caution over consumer spending and mortgage rates, Lowe’s has reaffirmed its guidance for fiscal year 2025, projecting sales between $83.5 billion and $84.5 billion.

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