On Monday, TD Cowen maintained its Hold rating on shares of Lowe's Companies, Inc. (NYSE:LOW) with a steady price target of $240.00. The firm's stance comes after a discussion with the Farnsworth Group, a home improvement expert panel.
According to the insights from the call, near-term demand for home improvement is anticipated to remain weak due to market uncertainties. Still, there is an expectation for a rebound to mid-single-digit growth by the second half of 2025, primarily fueled by the professional customer segment.
The expert panel highlighted that while backlogs and leads are currently strong, there is a potential for a temporary dip in demand. This forecast aligns with the broader industry outlook, which suggests a cautious approach in the short term but a more optimistic view for the medium-term growth prospects.
TD Cowen's analysis suggests that the information gathered from the home improvement expert call has a slightly positive implication for Home Depot (NYSE:HD), which the firm rates as Buy. In contrast, the insights are seen as slightly negative for Lowe's, corroborating the decision to maintain the Hold rating for the company's shares.
The $240.00 price target set by TD Cowen for Lowe's indicates the firm's expectation of where the stock price may settle in the foreseeable future. This target is reflective of both the challenges and opportunities that lie ahead for the company within the home improvement retail sector.
Lowe's Companies, Inc., a leading home improvement retailer, continues to navigate through a period marked by economic uncertainty, with industry experts closely monitoring the company's performance and potential growth trajectory in the coming years.
In other recent news, Lowe's Companies Inc (NYSE:LOW). has reported first-quarter earnings per share that were 4% higher than expected, despite a challenging macroeconomic climate. Still, the company's second-quarter earnings per share guidance was below consensus, which raised concerns among analysts.
In addition, Lowe's has announced a 5% increase in its quarterly cash dividend to $1.15 per share, reflecting the company's confidence in its growth strategy and commitment to delivering shareholder value.
The company has also appointed Jennifer Wilson as the new Senior Vice President and Chief Marketing Officer. She will be responsible for leading strategic brand and product marketing, loyalty and personalization, promotional planning, creative, media, and the management of Lowe's retail media network. In addition, Wilson will spearhead the creation of a new customer experience integration organization aimed at delivering comprehensive customer journeys.
Analysts from firms such as Mizuho Securities USA LLC, Piper Sandler, RBC Capital Markets, and Barclays Capital Inc. have provided their ratings on Lowe's, ranging from "Buy" to "Equal Weight."
BofA Securities maintained its Buy rating on Lowe's, citing the company's successful advancement with its Total Home strategy. Still, TD Cowen sustained its Hold rating on Lowe's, noting an unexpected gross margin shortfall.
In other developments, Lowe's has partnered with DoorDash (NASDAQ:DASH) and Shipt to expand same-day delivery options, contributing to its online sales growth. These are some of the recent developments at Lowe's Companies Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.