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On Wednesday, Truist Securities expressed continued confidence in Lowe’s Companies Inc. (NYSE: NYSE:LOW), maintaining a Buy rating and a price target of $258.00. According to InvestingPro data, analyst targets for Lowe’s range from $217 to $305, with the company maintaining a "Good" overall financial health score. The home improvement retailer’s performance in the first quarter was closely aligned with market expectations, despite experiencing a slight comparable sales decline of 1.7%, which was a modest deviation from Truist’s estimate of a 1.5% decrease. The company, currently valued at $129.4 billion by market cap, has maintained a solid gross profit margin of 33.3% over the last twelve months.
Lowe’s faced more challenges early in the quarter compared to its competitor Home Depot (NYSE:HD), attributed to its larger assortment of outdoor and seasonal products. However, data from Truist Card indicated a significant recovery for Lowe’s, with comparable sales improving by approximately 5 percentage points from the end of February to the quarter’s end.
The company’s margin and EBIT (earnings before interest and taxes) results were in line with Truist’s forecasts, and Lowe’s reaffirmed its full-year guidance. Truist analysts highlighted the stabilizing core demand for home improvement, which seems resilient in the face of broader economic and tariff-related uncertainties.
The analysts at Truist Securities anticipate that Lowe’s will see continued sales and earnings growth throughout the calendar year 2025. The firm’s position remains optimistic about the company’s stock, encouraging investment as they forecast an uptrend in Lowe’s financial performance. Further insights are expected following the company’s earnings call later in the day.
In other recent news, Lowe’s Companies Inc. is preparing to release its first-quarter earnings report for fiscal year 2025. Analysts from Citi have adjusted Lowe’s price target to $253, citing a potential shortfall in earnings per share due to unfavorable weather and a decline in demand for do-it-yourself products. Meanwhile, KeyBanc Capital Markets has upgraded Lowe’s stock rating to Overweight, setting a new price target of $266. This upgrade is attributed to Lowe’s strategic initiatives and the recent acquisition of Artisan Design Group, which is expected to enhance offerings to professional customers.
The acquisition of Artisan Design Group, finalized for $1.325 billion, aligns with Lowe’s strategy to expand its professional services. DA Davidson maintains a Neutral rating on Lowe’s with a price target of $270, noting the acquisition’s potential to introduce Lowe’s products to a new market segment. Stifel analysts maintain a Hold rating on Lowe’s, reflecting a cautious stance ahead of the earnings release, with expectations of mixed trends.
Additionally, President Donald Trump is set to meet with representatives from major retailers, including Lowe’s, to discuss the impact of tariffs on their businesses. This meeting occurs during a 90-day halt in increased tariffs, providing an opportunity for negotiation. The outcome of these discussions could influence future operations for companies like Lowe’s, as they navigate the challenges posed by tariffs.
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