RBC Capital Raises Lowe's (LOW) Price Outlook after Strong January Trends

Lowe’s Companies, Inc. (NYSE:LOW) is included among the Goldman Sachs Dividend Stocks: Top 14 Stock Picks.

On February 23, RBC Capital analyst Steven Shemesh raised the price recommendation on Lowe’s Companies, Inc. (NYSE:LOW) to $257 from $252. The analyst reiterated a Sector Perform rating on the shares ahead of the company’s Q4 results. In his research note, the analyst said transaction data showed trends similar to Q3, with January standing out as the strongest month of the quarter.

Earlier, on February 18, Bernstein also raised its price target on Lowe’s to $313 from $284. The firm maintained an Outperform rating. Analysts said expectations for Q4 home improvement earnings remain modest. Bernstein lowered its comparable sales forecast by 40bps to 50bps for the quarter. The firm pointed to winter storms, which likely slowed Pro projects and homebuilding activity.

On February 13, Reuters reported that Lowe’s plans to cut about 600 corporate and support roles. This represents less than 1% of its total workforce. A company spokesperson said the decision is meant to direct more focus and resources toward store operations and frontline employees who work directly with customers. The spokesperson also said Lowe’s will support affected employees. This includes financial assistance, continued benefits for a limited period, and help with finding new job opportunities.

Lowe’s Companies, Inc. (NYSE:LOW) operates as a home improvement retailer. The company sells products used in construction, maintenance, repairs, remodeling, and home decoration.

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