Wolfe Research lowered its price target on Lowe's Companies Inc. (NYSE:LOW) to $254 from $288 while maintaining an Outperform rating. Shares currently trade at $221.05, near their 52-week low of $208.
The firm cited the home improvement retailer's results that missed expectations and commentary on second-quarter-to-date performance that was more subdued than anticipated.
Wolfe Research expects muted demand to persist through 2026 and likely into 2027. The analyst comments, "Lowe's results missed expectations and commentary on 2QTD was more muted than we had anticipated. As a result, we continue to expect muted demand through '26 and likely into '27 as higher rates and the lock-in effect remain a persistent overhang on the sector."
Despite near-term headwinds, the stock trades at a P/E ratio of 18.46 and offers a 2.17% dividend yield. According to Bond.az analysis, the stock appears overvalued relative to its Fair Value.
Higher interest rates and the lock-in effect are expected to remain a persistent overhang on the home improvement sector.
The firm maintained its Outperform rating despite the reduced price target.
