Citi cuts Lowe's price target to $260, keeps Buy rating

Citi analyst Steven Zaccone lowered his price target on Lowe's (NYSE: LOW) to $260 from $267, while maintaining a Buy rating on the stock.

Zaccone said estimates were trimmed slightly due to lower projected sales growth in 2026 and a modest reduction for 2027. The revised price target is based on an unchanged 20x multiple applied to a lowered fiscal year 2027 earnings-per-share estimate.

The analyst noted that Lowe's second-quarter results drew a positive market reaction and that 2026 is now "essentially de-risked." He added that the thesis of Lowe's trailing Home Depot on same-store sales has "largely played out," with attention shifting to the broader housing, macroeconomic, and interest rate environment.

Zaccone identified areas where Lowe's has work to do, including improving its market share narrative, clarifying its margin trajectory, and outlining growth plans related to its FBM and ADG integrations, all of which he expects to be addressed at an analyst day scheduled for December.

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