Lowe’s stock price target raised to $325 from $300 at UBS on DIY improvement

Investing.com - UBS raised its price target on Lowe’s (NYSE:LOW) to $325 from $300 while maintaining a Buy rating following the company’s second-quarter results. The home improvement retailer, with a market capitalization of $144.5 billion and a P/E ratio of 21.4x, is currently trading near overbought levels according to InvestingPro technical indicators.

The home improvement retailer demonstrated share-gaining comparable sales growth, supported by improvements in its DIY segment, which had previously been under pressure, according to UBS.

The firm noted that Lowe’s pro initiatives and the recent addition of ADG bolstered ongoing strength with professional customers, while the announced acquisition of FBM further demonstrates execution of its Total (EPA:TTEF) Home strategy.

UBS sees a compelling path ahead for Lowe’s in the second half of the year, citing pro initiatives accelerating, the anticipated passing of tariff-driven price increases, and potential for interior big-ticket trends to gain traction.

The firm believes Lowe’s will be a prime beneficiary of a housing cycle recovery, suggesting the company’s shares will outperform as this recovery unfolds.

In other recent news, Lowe’s Companies Inc. reported its second-quarter 2025 earnings, with adjusted earnings per share (EPS) coming in at $4.33, surpassing analysts’ forecast of $4.24. Revenue for the quarter was in line with predictions at $23.96 billion. The company also maintained its full-year guidance, reinforcing its position in the home improvement market. Truist Securities raised its price target for Lowe’s to $283, citing solid second-quarter results and maintaining a Buy rating. The firm highlighted that Lowe’s sales and comparable store sales met expectations, with slightly higher than anticipated margins. Morgan Stanley (NYSE:MS) also raised its price target for Lowe’s to $270, noting a positive risk/reward profile following the company’s acquisition of Foundation Building Materials (NYSE:FBM). This acquisition is part of a trend in the building products distribution sector, as seen with Home Depot (NYSE:HD)’s recent acquisition of GMS. Meanwhile, William Blair reiterated an Outperform rating on QXO Inc, as merger and acquisition activity in the sector continues to heat up.

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