Citi Analyst Upgrades Lowe's to Buy Amid Recovery Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 37 minutes ago
0mins
Source: seekingalpha
- Sales Growth Trend: Citi Research analyst Steven Zaccone highlights that Lowe's has achieved four consecutive quarters of same-store sales growth, indicating a stronger market exposure in the DIY-led recovery, which has prompted an upgrade of its stock rating from Hold to Buy, reflecting market confidence in its future performance.
- Macro Risk Assessment: Despite external risks from geopolitical conflicts, interest rates, and the housing market, Zaccone believes that Lowe's shares present an attractive risk/reward profile after the recent pullback, especially against the backdrop of strong spring performance, with expectations for the company to exceed first-quarter forecasts.
- Market Demand Potential: Zaccone anticipates that 2026 will be a year of gradual improvement, even if growth is slightly lower, as pent-up demand for home improvement spending is expected to rise due to increased existing home sales and lower rates, providing support for Lowe's long-term growth.
- Competitor Analysis: While Zaccone has slightly trimmed his full-year estimates for Home Depot, he maintains a Buy rating, asserting that Home Depot remains the highest-quality investment option for an eventual housing recovery, bolstered by unmatched scale and customer penetration.
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Analyst Views on LOW
Wall Street analysts forecast LOW stock price to rise
22 Analyst Rating
16 Buy
6 Hold
0 Sell
Moderate Buy
Current: 226.060
Low
250.00
Averages
278.27
High
316.00
Current: 226.060
Low
250.00
Averages
278.27
High
316.00
About LOW
Lowe's Companies, Inc. is a home improvement company. The Company offers a complete line of products for construction, maintenance, repair, remodeling, and decorating. It offers home improvement products in various categories, including appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and decor. It is focused on offering a wide selection of national brand-name merchandise complemented by its selection of private brands. Its services include installed sales and Lowe's Protection Plans and Repair Services. The Company offers installation services through independent contractors in many of its product categories. It offers extended protection plans for certain products within the appliances, kitchens and bath, decor, millwork, rough plumbing, electrical, seasonal and outdoor living, tools, and hardware categories. It operates over 1,700 home improvement stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Citi Analyst Upgrades Lowe's to Buy Amid Recovery Prospects
- Sales Growth Trend: Citi Research analyst Steven Zaccone highlights that Lowe's has achieved four consecutive quarters of same-store sales growth, indicating a stronger market exposure in the DIY-led recovery, which has prompted an upgrade of its stock rating from Hold to Buy, reflecting market confidence in its future performance.
- Macro Risk Assessment: Despite external risks from geopolitical conflicts, interest rates, and the housing market, Zaccone believes that Lowe's shares present an attractive risk/reward profile after the recent pullback, especially against the backdrop of strong spring performance, with expectations for the company to exceed first-quarter forecasts.
- Market Demand Potential: Zaccone anticipates that 2026 will be a year of gradual improvement, even if growth is slightly lower, as pent-up demand for home improvement spending is expected to rise due to increased existing home sales and lower rates, providing support for Lowe's long-term growth.
- Competitor Analysis: While Zaccone has slightly trimmed his full-year estimates for Home Depot, he maintains a Buy rating, asserting that Home Depot remains the highest-quality investment option for an eventual housing recovery, bolstered by unmatched scale and customer penetration.
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- Optimistic Earnings Outlook: While analysts expect only marginal growth for Lowe's Q1 results, Citi's analyst Steven Zaccone believes the company will beat street estimates and continue to outperform the industry through 2026, showcasing confidence in a multi-year recovery.
- Market Performance Analysis: Despite economic uncertainties impacting consumer sentiment, Lowe's has shown consistent strength in same-store sales, with Zaccone noting four consecutive quarters of positive same-store sales, a trend expected to continue through 2026.
- Industry Growth Potential: According to Global Market Insights, the home improvement market is projected to grow at a 4.1% CAGR to $1.4 trillion by 2035, indicating that Lowe's presents an attractive investment opportunity in the industry's recovery.
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Citi Analyst Upgrades Lowe's to Buy Amid Recovery Prospects
- Sales Growth Trend: Citi Research analyst Steven Zaccone highlights that Lowe's has achieved four consecutive quarters of same-store sales growth, indicating a stronger market exposure in the DIY-led recovery, which has prompted an upgrade of its stock rating from Hold to Buy, reflecting market confidence in its future performance.
- Macro Risk Assessment: Despite external risks from geopolitical conflicts, interest rates, and the housing market, Zaccone believes that Lowe's shares present an attractive risk/reward profile after the recent pullback, especially against the backdrop of strong spring performance, with expectations for the company to exceed first-quarter forecasts.
- Market Demand Potential: Zaccone anticipates that 2026 will be a year of gradual improvement, even if growth is slightly lower, as pent-up demand for home improvement spending is expected to rise due to increased existing home sales and lower rates, providing support for Lowe's long-term growth.
- Competitor Analysis: While Zaccone has slightly trimmed his full-year estimates for Home Depot, he maintains a Buy rating, asserting that Home Depot remains the highest-quality investment option for an eventual housing recovery, bolstered by unmatched scale and customer penetration.
See More
Latest Wall Street Ratings Overview
- Goldman Sachs Bullish on Aevex: Goldman Sachs initiates coverage of Aevex (AVEX) with a Buy rating and a $34 price target, based on a 5.4X CY27 EV/Sales, indicating confidence in the company's unique position in the drone market and its growth potential.
- Citi Raises Broadcom Target: Citi raises Broadcom's price target from $475 to $500, applying a 20x multiple to FY28 EPS of $25, reflecting optimism about the company's earnings visibility and maintaining its status as the #1 semiconductor pick for 2026.
- JPMorgan Upgrades Braskem: JPMorgan upgrades Braskem to Overweight from Neutral, citing improved market fundamentals, tighter supply, and strengthened governance post-restructuring, which are expected to enhance profit margins in the chemical sector.
- Evercore Initiates Benitec Coverage: Evercore initiates coverage of Benitec Biopharma with an Overweight rating, highlighting significant upside potential in the rare disease market, suggesting promising investment opportunities ahead.
See More
Citi Bullish on Lowe's Ahead of Earnings Report
- Rating Upgrade: Citi upgraded Lowe's from neutral to buy while maintaining a $285 price target, indicating a 26% upside from Monday's close, reflecting strong confidence in the company's future performance.
- Optimistic Earnings Outlook: While analysts expect only marginal growth for Lowe's Q1 results, Citi's analyst Steven Zaccone believes the company will beat street estimates and continue to outperform the industry through 2026, showcasing confidence in a multi-year recovery.
- Market Performance Analysis: Despite economic uncertainties impacting consumer sentiment, Lowe's has shown consistent strength in same-store sales, with Zaccone noting four consecutive quarters of positive same-store sales, a trend expected to continue through 2026.
- Industry Growth Potential: According to Global Market Insights, the home improvement market is projected to grow at a 4.1% CAGR to $1.4 trillion by 2035, indicating that Lowe's presents an attractive investment opportunity in the industry's recovery.
See More
Stocks Hit Record Highs as Analysts Raise Earnings Forecasts
- Year-End Target Raised: Ed Yardeni, president of Yardeni Research, increased his year-end S&P 500 target from 7,700 to 8,250, representing an 11.5% upside from last Friday's close of 7,398.93, reflecting strong bullish sentiment driven by optimistic earnings forecasts from analysts.
- Strong Earnings Expectations: Over 400 S&P 500 companies have reported earnings, with 84% exceeding expectations; if this beat rate continues through the reporting period, it would mark the highest rate since Q2 2021, indicating a significant improvement in market profitability.
- Significant Earnings Growth: These companies have posted a remarkable 25.6% year-over-year earnings growth, far surpassing the five-year average of 7.1%, showcasing robust economic recovery and bolstering investor confidence in future market performance.
- Oil Price Impact on Outlook: Although high oil prices due to the U.S.-Iran conflict could dampen future earnings, with West Texas Intermediate futures soaring 71% this year, Yardeni remains optimistic about the economy and consumer resilience, as analysts are also raising earnings estimates for the upcoming quarters.
See More
OEF Stock Price Analysis and ETF Dynamics
- Price Fluctuation Analysis: OEF's 52-week low is $269.21 and high is $362.45, with the latest trade at $362.44, indicating the stock is near its peak, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average can provide valuable insights for investors, aiding in market trend assessments.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade in 'units' rather than traditional shares, allowing for flexibility in response to market demand, as these units can be created or destroyed.
- Liquidity Monitoring: Weekly monitoring of changes in ETF shares outstanding highlights significant inflows or outflows, where inflows necessitate purchasing underlying assets, while outflows may lead to selling, impacting the performance of individual stocks within the ETF.
See More
Major Wall Street Rating Updates
- Chipotle Upgrade: Argus upgraded Chipotle Mexican Grill from Hold to Buy, indicating a return to growth, which reflects market optimism about the company's future performance.
- Full Truck Alliance Initiation: Bank of America initiated coverage on Full Truck Alliance (FTA) with a Buy rating and a price target of $11.3, implying a 33% total return potential, showcasing confidence in its business model.
- Alto Neuroscience Promising Outlook: Bank of America initiated coverage of Alto Neuroscience (ANRO) with a Buy rating and a $35 price target, emphasizing its innovative potential in treating psychiatric disorders, which may attract more investor interest.
- Amazon Supply Chain Expansion: Bank of America reiterated its Buy rating on Amazon, highlighting the significant market potential of Amazon Supply Chain Services, which offers comprehensive logistics solutions for all businesses, further solidifying its market leadership.
See More
