Barclays upgrades Lowe’s to Overweight on valuation, pent-up demand

Barclays analyst Seth Sigman upgraded Lowe’s (LOW) to Overweight from Equal Weight with a price target of $285, up from $259. The firm upgraded the shares as part of its broadlines, hardlines and food retail outlook for 2026. The analyst expects improvements in discretionary goods demand, especially among mid- and high-income consumers who will benefit from upcoming tax changes. Value-oriented retailers should continue to gain from ongoing low-income pressures, the analyst tells investors in a research note. On Lowe’s, Barclays sees a “relatively attractive valuation.” The upgrade reflects improvements in the company’s do-it-yourself and pro business unit as well as potential upside from housing and pent-up demand, the firm contends.