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Investing.com - Mizuho (NYSE:MFG) maintained its Outperform rating and $280.00 price target on Lowe’s (NYSE:LOW) stock Thursday, highlighting the retailer’s improved performance and recent acquisition. Currently trading at $257.14, with analyst targets ranging from $221 to $300, the stock has shown strong momentum with a 8.66% return over the past six months. According to InvestingPro analysis, Lowe’s maintains a GOOD financial health score, though technical indicators suggest the stock is currently in overbought territory.
The home improvement retailer demonstrated month-to-month sales acceleration in July, posting domestic comparable sales growth of 4.7%, outperforming competitor Home Depot ’s (NYSE:HD) 3.3% growth during the same period.
Lowe’s reported positive performance across 9 of 14 merchandise categories in the second quarter, with DIY sales returning to positive comparable growth for the first time in several quarters, despite negative seasonal category performance.
The company’s nearly $9 billion acquisition of Foundation Building Materials (NYSE:FBM) represents a significant expansion into the professional contractor segment, adding approximately $6.5 billion in annualized revenue compared to competitor SRS Distribution’s approximately $10 billion yearly pace.
Mizuho noted that Lowe’s will face challenging year-over-year comparisons in the third and fourth quarters, as the company benefited from a 100 basis point sales lift related to hurricane activity in each of those quarters last year.
In other recent news, Lowe’s has seen several analyst firms raise their stock price targets following key developments. Barclays (LON:BARC) increased its price target to $267, highlighting the benefits from recent acquisitions, including Architectural Digest Group and Foundation Building Materials (FBM). Wells Fargo (NYSE:WFC) also raised its target to $290, citing a solid second quarter with notable sales growth and strategic expansion into the Planned Pro segment via the FBM deal. RBC Capital adjusted its price target to $260, maintaining a Sector Perform rating and noting that the FBM acquisition is expected to impact financials by the first quarter of 2026. Bernstein SocGen Group increased their target to $279, focusing on Lowe’s Pro strategy and growth opportunities in the Pro market. Lastly, DA Davidson raised its price target to $266, pointing to improved comparable sales and guidance that exceeded expectations, alongside the FBM acquisition. These developments reflect a positive outlook from analysts on Lowe’s strategic moves and financial performance.
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