Lowe’s Hold Rating: Strong Q1 Performance Amidst Tariff Concerns and Limited Future Visibility

Analyst Max Rakhlenko of TD Cowen maintained a Hold rating on Lowe’s (LOW – Research Report), retaining the price target of $245.00.

Max Rakhlenko has given his Hold rating due to a combination of factors influencing Lowe’s current market position. The company’s first-quarter performance was stronger than anticipated, with better-than-expected comparable sales driven by robust trends in March and April. Despite a weak start in February, the overall quarter showed resilience, especially in the professional segment, which remains strong, while the do-it-yourself segment is stable but lacks growth catalysts.
However, concerns about potential price increases due to tariffs and the company’s reliance on first-in, first-out accounting methods suggest that costs might rise in the near future. While Lowe’s has maintained its guidance for the fiscal year, the visibility into the second half remains limited, and the company faces tougher comparisons in the upcoming quarters. These factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these challenges.

In another report released yesterday, Citi also maintained a Hold rating on the stock with a $253.00 price target.