Robert Ohmes, an analyst from Bank of America Securities, reiterated the Buy rating on Lowe’s. The associated price target was lowered to $280.00.
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Robert Ohmes has given his Buy rating due to a combination of factors that highlight Lowe’s strong financial performance and strategic positioning. The company reported an adjusted EPS for the third quarter that exceeded expectations, driven by a 0.4% increase in comparable sales, with significant contributions from higher ticket sales in the professional and appliance segments. Additionally, Lowe’s online sales showed robust growth, and there were positive signs in the home services sector.
Despite some deceleration in comparable sales as the quarter progressed, Lowe’s managed to maintain a positive trend into the start of November, supported by strong appliance sales and seasonal demand. The company’s gross margin improved, benefiting from the absence of last year’s storm-related pressures and better inventory management. Furthermore, Lowe’s strategic initiatives, such as the inclusion of Foundation Building Materials (FBM) in its Pro extended aisle, are expected to enhance its market reach and support long-term growth. These factors, combined with Lowe’s Total Home strategy and productivity initiatives, position the company well in a challenging macroeconomic environment, justifying the Buy rating.
In another report released today, Bernstein also assigned a Buy rating to the stock with a $284.00 price target.
LOW’s price has also changed slightly for the past six months – from $234.430 to $228.410, which is a -2.57% drop .