Oil prices hold sharp losses with focus on secondary India tariffs
Investing.com - Stifel raised its price target on Lowe’s (NYSE:LOW) to $275.00 from $265.00 on Thursday, while maintaining a Hold rating on the home improvement retailer’s shares. The stock, currently trading at $257.14, has shown strong momentum with an 8.66% return over the past six months, though InvestingPro data indicates the shares are currently trading above their Fair Value.
The price target adjustment follows Lowe’s second-quarter fiscal 2025 earnings report, which Stifel noted showed stronger results and favorable July exit-rate trends that helped the stock overcome broader market weakness. The company maintains solid fundamentals with a healthy EBITDA of $12.48 billion and has demonstrated its commitment to shareholder returns by maintaining dividend payments for 55 consecutive years.
Stifel’s analysis suggests the home improvement category is "at worst featuring a prolonged malaise," based on Lowe’s results and commentary alongside competitor Home Depot (NYSE:HD)’s performance.
Despite raising estimates due to increased confidence in their outlook, Stifel analysts indicated they lack sufficient conviction to take a more constructive approach on the stock.
The firm also expressed surprise that scrutiny around Lowe’s $8.8 billion acquisition of Foundation Building Materials (NYSE:FBM) did not result in weaker share price performance, noting that while the platform acquisition aligns with Lowe’s growth strategy for professional customers, it represents a significant expense and potential near-term risk due to FBM’s exposure to new construction.
In other recent news, Lowe’s reported a 1.1% increase in comparable sales during the second quarter, marking its strongest performance in over two years. This growth was driven by improvements in both the Professional and DIY customer segments, despite initial unfavorable weather conditions. Following these results, several financial firms adjusted their outlooks on Lowe’s stock. KeyBanc raised its price target to $300, maintaining an Overweight rating, while Wells Fargo (NYSE:WFC) increased its target to $290, also keeping an Overweight stance. JPMorgan slightly adjusted its price target to $283, citing Lowe’s self-help initiatives aimed at narrowing the gap with competitor Home Depot. Mizuho (NYSE:MFG) reiterated its Outperform rating, emphasizing Lowe’s domestic sales growth of 4.7% in July, which surpassed Home Depot’s 3.3% growth. Barclays (LON:BARC) raised its price target to $267, attributing the increase to benefits from Lowe’s recent acquisitions of Architectural Digest Group and Foundation Building Materials. These developments underscore the positive outlook many analysts hold for Lowe’s, reflecting confidence in the company’s strategic initiatives and recent acquisitions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.