TD Cowen Reiterates Hold Rating on Lowe's (LOW)

TD Cowen analyst Max Rakhlenko reiterated a Hold rating and $245.00 price target on Lowe's (NYSE: LOW).

The analyst commented: "Encouraged by an overall solid 1Q print driven by better than feared comps, and set up for 2Q looks favorable for now. Pro remains strong while DIY is weak but stable which is likely to persist over the coming quarters as we don't see a N-T positive catalyst besides Spring breaking. LOW should be in good shape to manage through tariffs, but ultimately prices could increase.

The ADG acquisition will allow LOW to enter the new home build market (initial thoughts LINK) and opens a $50bn TAM. ADG generated $1.8bn in FY24 and we assume generated MSD+ EBIT margins. We're neutral on the acquisition and think it should help LOW in the longer-term but won't be a meaningful driver of growth for now. We now embed ADG into 2H revenue ($875mm) at a 6% EBIT margin, contributing 7c to FY25 EPS."

For an analyst ratings summary and ratings history on Lowe's click here. For more ratings news on Lowe's click here.

Shares of Lowe's closed at $227.37 yesterday.

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