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Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Lowe’s (NYSE:LOW) to $290 from $260 on Thursday, while maintaining an Overweight rating on the home improvement retailer’s stock. The company, a prominent player in the Specialty Retail industry with a market capitalization of $144.5 billion, has demonstrated strong financial health with an overall score of "GOOD" according to InvestingPro analysis.
The price target increase follows what Wells Fargo described as a "solid" second quarter for Lowe’s, with comparable sales upside led by July’s 4.7% growth, an EBIT beat, and strategic expansion into the Planned Pro segment via the FBM deal. The company’s financial strength is reflected in its healthy EBITDA of $12.48 billion and gross profit margin of 33.4%. InvestingPro data reveals 8 more key insights about Lowe’s performance and outlook.
Despite facing obstacles, Lowe’s Q2 comparable sales matched initial expectations, with positive performance in the Pro segment, DIY improvement, and 3.6% growth in big ticket items.
The company expects Q3 comparable sales to increase by 125 basis points, despite lapping a 100 basis point hurricane benefit from the previous year, suggesting solid quarter-to-date performance.
Wells Fargo raised its estimates for Lowe’s, including FBM in 2026, and noted potential for price-to-earnings multiple expansion versus Home Depot (NYSE:HD), which currently trades at a 6x turn premium despite narrower comparable sales performance.
In other recent news, Lowe’s has been the focus of multiple analyst upgrades following its second-quarter results and strategic moves. UBS raised its price target for Lowe’s to $325, highlighting improvements in the company’s DIY segment and share-gaining comparable sales growth. DA Davidson also increased its price target to $266, citing Lowe’s comparable sales improvement and second-half guidance that surpassed expectations. The firm’s recent acquisition of Foundation Building Materials (NYSE:FBM) was noted as a contributing factor.
RBC Capital adjusted its price target to $260, maintaining a Sector Perform rating, and anticipates the FBM acquisition will begin impacting financials in early 2026. Bernstein SocGen Group set a new price target of $279, acknowledging Lowe’s strategic entry into the complex Pro market while maintaining an Outperform rating. Additionally, the acquisition of FBM, a significant player in wallboard distribution, was highlighted amid increased M&A activity in the sector. These developments reflect Lowe’s strategic initiatives and the positive reception from analysts.
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