Telsey Advisory Raises Lowe's (LOW) Outlook on Solid Demand and Execution Strength

Lowe’s Companies, Inc. (NYSE:LOW) is included among the 13 Best Long-Term Dividend Stocks to Invest in Right Now.

On February 26, Telsey Advisory analyst Joseph Feldman raised the price recommendation on Lowe’s Companies, Inc. (NYSE:LOW) to $295 from $285. He reiterated an Outperform rating on the stock. The analyst said the company delivered better-than-expected Q4 results, with demand holding steady across regions. At the same time, the firm noted that Lowe’s FY26 guidance came in below expectations. Even so, Telsey said it remains confident in the company’s ability to manage ongoing challenges and continue gaining market share in a difficult housing environment.

On February 25, Lowe’s projected full-year sales and profit below Wall Street estimates. The outlook reflected a more cautious stance compared with larger rival Home Depot, as the U.S. housing market remains sluggish and consumers continue to limit spending. The company’s DIY segment has faced pressure, as many households delayed major renovation projects such as kitchen upgrades and flooring installations. Many customers appear to be waiting for clearer direction on mortgage rates and the broader economy before committing to larger projects.

CEO Ellison said the tariff policy remains uncertain and that the company is still assessing the potential impact. The US introduced a new 10% tariff on all non-exempt goods starting Tuesday, following President Donald Trump’s announcement of a temporary global 10% tariff after a Supreme Court ruling against earlier duties.

Looking ahead, Lowe’s expects 2026 comparable sales to range from flat to up 2%. This outlook falls slightly below analysts’ average expectation of 2% growth, according to LSEG data. The company also forecast adjusted earnings per share between $12.25 and $12.75, compared with expectations of $12.95. Despite the cautious outlook, Lowe’s delivered solid fourth-quarter results. Same-store sales increased 1.3%, marking the strongest growth since the third quarter of 2022 and exceeding expectations. Adjusted earnings came in at $1.98 per share, ahead of estimates of $1.94.

Lowe’s Companies, Inc. (NYSE:LOW) operates as a home improvement retailer. The company offers a full range of products used in construction, maintenance, repair, remodeling, and home improvement projects.

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