Lowe's Price Target Cut at Truist Following Q1 Earnings

Truist Securities analysts reduced the price target for Lowe's (NYSE:LOW) to $265 from $271, while maintaining their Buy rating on the stock following Q1 earnings release.

The analysts noted that the first-quarter results slightly exceeded investor expectations, largely due to the arrival of spring weather. Professional sales showed positive comparable growth for the quarter, which helped counterbalance the ongoing weakness in do-it-yourself (DIY) sales, particularly for high-ticket discretionary items.

The analysts mentioned that the projected recovery curve has been moderated, now expecting a decline of 4% in the first half and flat to slightly positive growth in the second half, compared to the previous forecast of a 6% decline to 2-3% growth. They believe this lower expectation for the second half presents more opportunities for incremental gains.

Given the positive Pro sales, stable margins, and easier comparisons for DIY in the second half, the analysts remain optimistic about Lowe's, expecting significant improvements in home improvement gains.