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Investing.com - Piper Sandler raised its price target on Lowe’s (NYSE:LOW) to $294.00 from $269.00 on Thursday, while maintaining an Overweight rating on the home improvement retailer’s stock. The $143 billion market cap company currently trades at $255, with InvestingPro analysis indicating the stock is trading above its Fair Value.
The price target increase follows Lowe’s relatively in-line second quarter results, with the company largely reiterating its previous guidance. Trading at a P/E ratio of 21.12 and generating $83.6 billion in revenue, the company maintains a GOOD financial health score according to InvestingPro metrics. Piper Sandler noted late-quarter comparable sales strength, describing "green shoots" similar to those seen at Home Depot (NYSE:HD) that support a bullish outlook for Lowe’s in the second half of the year.
A significant development highlighted in the research note was Lowe’s acquisition of Foundation Building Materials (NYSE:FBM) for $8.8 billion. This transaction places Lowe’s in the building materials distribution business to serve larger professional customers, mirroring Home Depot’s strategy with its SRS acquisition and pending GMS purchase. InvestingPro Tips indicate that Lowe’s has maintained dividend payments for 55 consecutive years, demonstrating strong financial stability through various market cycles.
The research firm expressed initial positive sentiment toward the acquisition, noting that FBM will be accretive to earnings in 2026 and better positions Lowe’s for new home construction growth over the next decade.
Piper Sandler also pointed out that Lowe’s has returned to positive comparable sales growth, which is expected to continue in the second half of the year, despite no improvement in the broader housing market environment.
In other recent news, Lowe’s has reported significant developments that have caught the attention of various analyst firms. The company announced its second-quarter fiscal 2025 earnings, which showed stronger results and favorable trends, prompting Stifel to raise its price target to $275 while maintaining a Hold rating. KeyBanc also raised its price target to $300, citing Lowe’s 1.1% comparable sales growth in the second quarter, marking its strongest performance in over two years, and maintained an Overweight rating. Additionally, JPMorgan increased its price target to $283, highlighting Lowe’s self-help initiatives aimed at boosting top-line growth and improving margins.
Mizuho (NYSE:MFG) reiterated its Outperform rating with a $280 price target, noting the company’s robust performance and recent acquisitions that contributed to a 4.7% growth in domestic comparable sales in July, surpassing Home Depot’s 3.3% growth. Barclays (LON:BARC) raised its price target to $267, maintaining an Equalweight rating, and pointed to the benefits from Lowe’s acquisitions of Architectural Digest Group and Foundation Building Materials. These acquisitions have led to updated earnings estimates reflecting their positive impact. Overall, the company’s strategic moves and strong sales growth have led to favorable adjustments in analyst price targets and ratings.
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