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Investing.com - KeyBanc raised its price target on Lowe’s (NYSE:LOW) to $300 from $266 on Thursday, maintaining an Overweight rating following the home improvement retailer’s second-quarter results and acquisition announcements. According to InvestingPro data, the stock currently trades at $257.14, with analysts’ targets ranging from $221 to $300. Technical indicators suggest the stock is in overbought territory.
Lowe’s reported comparable sales growth of 1.1% in the second quarter, its strongest performance in over two years, with growth in both Professional and DIY customer segments despite unfavorable weather early in the quarter. The company’s comparable sales improved throughout the quarter, aligning with KeyBanc’s internal data tracking. With a market capitalization of $144.49 billion and annual revenue of $83.24 billion, Lowe’s maintains a strong financial health score of "GOOD" on InvestingPro, which offers 8 more exclusive insights about the company’s performance.
The retailer raised its fiscal 2025 sales and earnings per share guidance, reflecting both the second-quarter results and the inclusion of the ADG acquisition, which closed in June. Lowe’s also announced the acquisition of Foundation Building Materials (NYSE:FBM) for $8.8 billion, a move expected to enhance its capabilities in the Professional customer segment.
KeyBanc expressed increasing optimism about Lowe’s ability to gain market share within the Professional segment, while remaining positive on the medium-term housing recovery opportunity. These factors contributed to the firm’s decision to raise its price target while maintaining its Overweight rating.
The FBM acquisition represents Lowe’s latest strategic move to expand its presence in the Professional contractor market, complementing its earlier ADG acquisition as the company continues to diversify beyond its traditional DIY customer base. The company’s strong financial position is evidenced by its 41-year streak of dividend increases, currently yielding 1.87%. For detailed analysis and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Lowe’s has been the focus of several analyst updates following its earnings and strategic moves. Wells Fargo (NYSE:WFC) increased its price target for Lowe’s to $290, maintaining an Overweight rating, after the company reported a strong second quarter characterized by a 4.7% growth in comparable sales and an EBIT beat. JPMorgan also raised its price target to $283, citing 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, highlighting the company’s robust performance and recent acquisition activities. Barclays (LON:BARC) raised its price target to $267, reflecting the anticipated benefits from Lowe’s acquisitions of Architectural Digest Group and Foundation Building Materials. RBC Capital adjusted its price target to $260, noting the potential impact of the FBM acquisition on future financials. These developments indicate a positive outlook from analysts regarding Lowe’s recent performance and strategic acquisitions.
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