Zhihan Ma, an analyst from Bernstein, maintained the Buy rating on Lowe’s. The associated price target was raised to $279.00.
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Zhihan Ma’s rating is based on Lowe’s strategic expansion into the complex Pro market, which is expected to enhance its growth potential. Despite a slight miss in comparable sales, Lowe’s demonstrated resilience with improved earnings per share and stronger margins, indicating operational efficiency.
Additionally, the acquisition of Foundation Building Materials is anticipated to be beneficial in the long term, despite initial margin dilution. The company’s proactive approach to leverage reduction and its strategic positioning against competitors like Home Depot further support the positive outlook. As the market anticipates interest rate cuts, Lowe’s is favored over its peers due to its potential to narrow the valuation gap and capitalize on cyclical demand recovery.
Ma covers the Consumer Defensive sector, focusing on stocks such as Target, Costco, and Dollar General. According to TipRanks, Ma has an average return of 10.1% and a 68.18% success rate on recommended stocks.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $305.00 price target.