Update shared on26 Aug 2025
Fair value Increased 5.56%Analysts have raised Lowe’s price target to $277.71, citing stronger Q2 earnings, improved margin performance, enhanced guidance, and Pro segment expansion, though offset by continued DIY softness.
Analyst Commentary
- Bullish analysts cite Lowe's Q2 earnings beat, with improved comps and stronger margins, as a primary reason for upward price target revisions.
- Improved guidance for the back half of the year, with reiterated or enhanced full-year outlooks, has increased analyst confidence in the company's trajectory.
- Expansion into the Pro customer segment—including the FBM acquisition and increased large-ticket purchases—is seen as broadening exposure to market recovery and driving upside leverage.
- Positive near-term trends and a solid July exit-rate are reinforcing estimates and supporting higher valuation multiples extended to the next fiscal periods.
- Bearish analysts highlight ongoing challenges in the do-it-yourself segment, prompting downward revisions in same-store sales projections for the remainder of 2025.
What's in the News
- Lowe's updated full-year 2025 guidance, raising sales expectations to $84.5-$85.5 billion but lowering operating margin and diluted EPS projections slightly due to the inclusion of ADG; core business outlook remains unchanged.
- A new 130,000-square-foot Lowe's store opened at South Bridge Marketplace in Maricopa, reflecting expansion into a fast-growing market.
- Lowe's was dropped from the Russell 1000 Dynamic Index.
- The company launched the Lowe's Creator Network, partnering with creators like MrBeast to engage Millennial and Gen Z audiences and boost digital brand presence.
- Lowe's increased its quarterly dividend by 4% to $1.20 per share and reported no new buybacks in the recent tranche, having completed repurchases totaling 3.07% of shares under the current program.
Valuation Changes
Summary of Valuation Changes for Lowe's Companies
- The Consensus Analyst Price Target has risen from $264.45 to $277.71.
- The Consensus Revenue Growth forecasts for Lowe's Companies has significantly risen from 3.3% per annum to 4.4% per annum.
- The Future P/E for Lowe's Companies remained effectively unchanged, moving only marginally from 22.81x to 23.08x.
Disclaimer
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