TD Cowen has maintained its Hold rating on Lowe's Companies Inc (NYSE: NYSE:LOW), with a steady price target of $240.00. The firm anticipates that the second half of the year will mirror the first half, with positive but likely slower professional customer growth compared to the second quarter and continued pressure from do-it-yourself (DIY) customers. The professional customer segment is expected to see gains, albeit at a rate lower than the mid-single-digit increase experienced in the second quarter.
The firm notes that homeowners are currently in a varied financial state and are postponing non-essential purchases due to economic concerns. The behavior is expected to impact Lowe's, with the company's revised comparable sales guidance considered attainable, although recent trends indicate weakening performance.
TD Cowen highlighted that the trends up to the current date suggest a softening in the company's sales momentum. The upcoming December Analyst Day is identified as the next significant event for Lowe's, where the focus will be on medium-term productivity and growth among professional customers.
In other recent news, the home improvement retailer reported Q2 sales of $23.6 billion, a 5.1% decline in comparable sales year-over-year, but managed to exceed analysts' earnings per share (EPS) estimate of $4.00 with an actual EPS of $4.10. Despite facing challenges in the DIY segment and unfavorable weather conditions, Lowe's saw growth in its professional customer base and online sales.
Several financial firms have made adjustments to their price targets for Lowe's. Baird reaffirmed its Outperform rating on the company with a steady price target of $265, citing the company's resilience and successful initiatives targeting professional customers and enhancing its online presence. RBC Capital, BofA Securities, and Wells Fargo (NYSE:WFC) have also revised their price targets, with RBC Capital reducing its target to $238, BofA Securities lowering it to $275, and Wells Fargo adjusting it to $280.
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