Lowe's Performance To Dip As Home Improvement Market Faces Economic Headwinds: Analyst
Portfolio Pulse from Lekha Gupta
RBC Capital Markets analyst Steven Shemesh initiated coverage on Lowe's Companies, Inc. (NYSE:LOW) with a Sector Perform rating and a price target of $194. Shemesh expects Lowe's sales mix to result in underperformance in the near term due to worsening consumer backdrop. The analyst has a bearish view on home improvement due to higher interest rates, inflation, and shifting consumer spending towards services. Consequently, he estimates comp sales and EPS of -3.5% and $13.29 in FY23 and -0.3% and $13.84 in FY24.
November 07, 2023 | 7:58 pm
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Lowe's Companies, Inc. is expected to underperform in the near term due to a worsening consumer backdrop, according to RBC Capital Markets analyst Steven Shemesh. The analyst has a bearish view on the home improvement sector due to higher interest rates, inflation, and shifting consumer spending.
The analyst's bearish view on the home improvement sector and the expectation of underperformance for Lowe's in the near term due to worsening consumer backdrop could negatively impact the company's stock price. The analyst's price target of $194 also suggests limited upside potential from the current price.
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