Lowe’s Poised for Positive Sales Turnaround and Market Share Growth: A Buy Rating with a $280 Price Objective

Robert Ohmes, an analyst from Bank of America Securities, maintained the Buy rating on Lowe’s (LOWResearch Report). The associated price target remains the same with $280.00.

Robert Ohmes has given his Buy rating due to a combination of factors, including the expected sequential improvement in Lowe’s sales trends as the year progresses. Despite observing a decline in comparable sales for the first quarter, the report anticipates a turnaround with an inflection to positive comparable sales by the fourth quarter. This positive outlook is based on an assumption of easing comparisons to the previous year and the potential for an upturn in consumer and macroeconomic trends. Additionally, Lowe’s is expected to benefit from modest gross margin expansion driven by merchandising initiatives and reduced product and transportation costs, although these gains may be tempered by higher sales, general, and administrative expenses as a percentage of sales.
Ohmes’s Buy recommendation is also bolstered by Lowe’s strategic efforts to capture market share through its Total Home Strategy, which focuses on growth in both the professional and DIY customer segments. Despite a softening in the DIY market, Lowe’s has shown consistent growth in the professional space and aims to double the market rate of pro sales in the coming years. The report maintains a Buy rating with a price objective of $280, supported by a 21x multiple of the forecasted earnings per share for the financial year 2026/2025 estimate of $13.50. This reflects confidence in Lowe’s long-term strategy and its ability to navigate current market challenges while capturing future growth opportunities.

In another report released on May 9, Wells Fargo also maintained a Buy rating on the stock with a $290.00 price target.

LOW’s price has also changed moderately for the past six months – from $204.440 to $229.170, which is a 12.10% increase.

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Lowe’s (LOW) Company Description:

Founded in 1946, Lowe’s Companies, Inc. operates as a home improvement retailer in the United States, Canada and Mexico. It offers home improvement products in various categories including appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lighting & fans, outdoor living, windows, and doors. The company is headquartered in Mooresville, North Carolina.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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