Stifel maintains Lowe’s stock at Hold with $275 price target

Published 29/08/2025, 13:16
Stifel maintains Lowe’s stock at Hold with $275 price target

Investing.com - Stifel has reiterated its Hold rating on Lowe’s (NYSE:LOW) with a price target of $275.00, according to a research note released Friday. The home improvement retailer, currently trading at $257.54 with a market cap of $144.29 billion, maintains a consensus Hold rating from analysts with targets ranging from $221 to $325. According to InvestingPro analysis, Lowe’s currently trades above its Fair Value.

The firm updated its model following the filing of Lowe’s 10Q report, noting there were no material changes to its estimates.

Stifel referenced GMS (NYSE:GMS) first-quarter fiscal 2026 results, highlighting that GMS reported a 16% EBITDA decline for calendar first half 2025.

The analysis suggests Lowe’s is paying a higher multiple for its Foundation Building Materials (FBM) acquisition at 13.8x pro forma 2024 EBITDA (13.4x including tax benefits) compared to Home Depot’s (NYSE:HD) acquisition of GMS at 11.1x trailing twelve months EBITDA for fiscal second quarter 2026.

Despite expressing a "more negative view" of the FBM acquisition due to its expense, Stifel acknowledged the purchase was "necessary to successfully pursue the planned pro strategy to enhance long-term growth prospects."

In other recent news, Lowe’s reported its second-quarter results, showing a comparable sales growth of 1.1%, marking the company’s strongest performance in over two years. This growth was observed across both Professional and DIY customer segments, despite initial challenges from unfavorable weather conditions. Analysts have responded positively to these results, with Piper Sandler, Stifel, KeyBanc, and JPMorgan all raising their price targets for Lowe’s. Piper Sandler increased its target to $294, citing comparable sales strength, while Stifel adjusted its target to $275, noting stronger earnings and favorable trends. KeyBanc raised its target to $300, highlighting growth in both customer segments and recent acquisitions. JPMorgan set a new target of $283, emphasizing Lowe’s self-help initiatives aimed at improving top-line growth and margins. Additionally, Mizuho maintained its Outperform rating, pointing to the retailer’s sales acceleration in July and its competitive edge over Home Depot . These developments suggest a positive outlook for Lowe’s as it continues to enhance its market position.

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