Lowe’s Strategic Acquisition and Pro Initiatives Drive Buy Rating with $290 Price Target

Analyst Robert Ohmes of Bank of America Securities reiterated a Buy rating on Lowe’s (LOW – Research Report), retaining the price target of $290.00.

Robert Ohmes has given his Buy rating due to a combination of factors, including Lowe’s strategic acquisition of Artisan Design Group (ADG) for $1.325 billion. This acquisition is expected to expand Lowe’s market reach into the new home construction space, increasing its total addressable market by $50 billion. ADG’s integration is anticipated to enhance Lowe’s offerings without disrupting its existing network of independent contractors.
Additionally, Robert Ohmes believes that Lowe’s will continue to make progress on its Pro initiatives, such as the My Lowe’s Pro Rewards program and other strategies aimed at capturing professional planned spending. Despite a challenging macroeconomic environment, Lowe’s is well-positioned to achieve share gains through its Total Home strategy and other growth opportunities. The Buy rating is supported by a price objective of $290, reflecting confidence in Lowe’s future earnings potential.

Ohmes covers the Consumer Cyclical sector, focusing on stocks such as Costco, O’Reilly Auto, and AutoZone. According to TipRanks, Ohmes has an average return of 9.8% and a 59.48% success rate on recommended stocks.