Analyst Reinstates Lowe’s (LOW) at ‘Neutral’ Rating

With an annual dividend yield of 2.12%, Lowe’s Companies, Inc. (NYSE:LOW) is included among the 12 Best Blue Chip Dividend Stocks to Buy Now.

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Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement company serving approximately 20 million customers a week in the United States

On May 5, BofA reinstated Lowe’s Companies, Inc. (NYSE:LOW) at ‘Neutral’, while assigning the stock a price target of $260, indicating an upside potential of over 13% from the current share price. The analyst firm previously had a ‘Buy’ rating on the shares.

BofA believes that Lowe’s Companies, Inc. (NYSE:LOW)’s risk/reward ratio is balanced at current levels, as the company’s earnings growth remains limited and there is no clear catalyst since the housing activity stays subdued.

Given the market headwinds, Lowe’s issued cautious guidance for FY 2026 back in February. The company is targeting its total sales for the year to be $93 billion at the midpoint, below the consensus estimate of $93.28 billion. Meanwhile, adjusted earnings are expected in the range of $12.25 to $12.75 per share, also falling short of the $12.94 consensus estimate.

That said, Lowe’s Companies, Inc. (NYSE:LOW) remains a favorite among hedge funds and was recently placed in our list of the 10 Best Housing Stocks to Buy in 2026.

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