Stifel lowered its price target on Lowe’s (NYSE:LOW) to $240 from $250 while maintaining a Hold rating, following the company’s fiscal Q1 2025 earnings. Although results modestly outperformed expectations, the firm remains cautious about the outlook for the remainder of the year and beyond.
The firm kept its 2025 EPS forecast at the low end of Lowe’s reiterated guidance, citing uncertainty around the sustainability of top-line momentum. While Q1 saw an improvement in comparable sales as the quarter progressed, Stifel believes the implied pace of Q2 growth does not yet instill confidence in the company’s ability to meet full-year revenue targets—let alone the acceleration needed to support 2026 and 2027 estimates.
Stifel also pointed to mounting pressure from Home Depot’s stronger execution and comments about preserving pricing power under the new tariff environment. This has heightened scrutiny on Lowe’s ability to protect margins, particularly as Home Depot continues to outperform operationally.
The firm expects Lowe’s stock to trade sideways in the near term, with its valuation reflecting a modest discount to retail peers amid lingering questions around the timing and strength of a potential sales inflection.