Positive Outlook for Lowe’s: Buy Rating Driven by Sales Improvement, Stable Margins, and Strategic Acquisitions

Lowe’s (LOW – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Robert Ohmes from Bank of America Securities maintained a Buy rating on the stock and has a $290.00 price target.

Robert Ohmes has given his Buy rating due to a combination of factors that suggest a positive outlook for Lowe’s. One significant reason is the expected sequential improvement in comparable sales in the second half of the year, driven by enhancements in Pro services and online sales. This is anticipated despite the ongoing challenges in big-ticket discretionary spending.
Additionally, Lowe’s is expected to maintain a stable gross margin despite facing tariffs and cost pressures, thanks to its diversified sourcing strategy and cost-sharing with vendors. The acquisition of Artisan Design Group is also seen as a substantial growth opportunity, potentially expanding Lowe’s reach into new markets and customer segments. These factors, combined with merchandising initiatives aimed at boosting sales and productivity, underpin Ohmes’s optimistic view of Lowe’s stock.

Ohmes covers the Consumer Cyclical sector, focusing on stocks such as Dollar General, O’Reilly Auto, and AutoZone. According to TipRanks, Ohmes has an average return of 9.1% and a 59.01% success rate on recommended stocks.

In another report released on May 28, Jefferies also reiterated a Buy rating on the stock with a $275.00 price target.