Lowe’s Strategic 3P Marketplace Launch Drives Buy Rating

Analyst Jonathan Matuszewski from Jefferies reiterated a Buy rating on Lowe’s (LOW – Research Report) and keeping the price target at $275.00.

Jonathan Matuszewski has given his Buy rating due to a combination of factors that highlight Lowe’s strategic advancements in the online marketplace sector. Lowe’s has successfully launched its third-party (3P) marketplace, which is expected to significantly expand its product assortment and enhance revenue through high-margin commissions. The increase in 3P sellers is anticipated to optimize Lowe’s inventory management, thereby improving working capital efficiency.
Furthermore, Matuszewski draws parallels with other successful 3P marketplace implementations in the retail sector, such as those by Leroy Merlin and B&Q, which have shown substantial growth in SKU offerings and revenue contributions. With the potential for Lowe’s to broaden its SKU range and capitalize on the Retail Media Network’s momentum, the 3P marketplace is seen as a crucial growth lever for the company, justifying the Buy rating.

In another report released on May 22, Robert W. Baird also maintained a Buy rating on the stock with a $285.00 price target.