J.P. Morgan analyst Christopher Horvers maintained a Buy rating on Lowe’s yesterday and set a price target of $283.00.
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Christopher Horvers has given his Buy rating due to a combination of factors that highlight Lowe’s potential for growth and stability. The company’s recent acquisition of FBM is seen as a strategic move to expand its market presence, particularly in the residential and commercial building products distribution space. This acquisition aligns with Lowe’s strategy to grow organically and through bolt-on growth, without significantly increasing capital expenditure, which indicates a disciplined approach to expansion.
Furthermore, Lowe’s has demonstrated solid performance with its comparable sales figures, particularly in the second quarter, and management’s guidance for the second half of the year appears reasonable. The company’s initiatives to narrow the performance gap with its main competitor, Home Depot, and its resilience against e-commerce giants like Amazon, further support a positive outlook. Additionally, the favorable long-term industry trends, supported by housing dynamics and potential Federal Reserve rate cuts, contribute to the optimistic valuation of Lowe’s stock.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $300.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LOW in relation to earlier this year.