Truist Raises Lowe’s (LOW) Target as Shoppers Stay Focused on Value

Lowe’s Companies, Inc. (NYSE:LOW) is included among the 10 Cash-Rich Stocks to Buy Now.

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On December 17, Truist analyst Scot Ciccarelli raised the firm’s price target on Lowe’s Companies, Inc. (NYSE:LOW) to $269 from $256 and kept a Buy rating on the shares. The move came as part of a broader research note previewing 2026 for Hardlines and Broadlines consumer names. Ciccarelli said that slower consumer trends in the second half of FY25 point to shoppers remaining selective, with a continued focus on “Value.”

For Lowe’s, Truist highlighted the large amount of home equity still sitting on the sidelines. With more than $35T in equity and recent rate cuts, homeowners have meaningful “dry powder” to reinvest in what is often their largest asset. As long as existing home supply stays tight and prices remain flat to rising, the firm said it remains constructive on the home improvement space.

Lowe’s Companies, Inc. (NYSE:LOW) has been pushing hard to attract professional builders and contractors. These customers tend to spend more than typical shoppers and return often, since home construction and renovation are part of their daily work. That strategy showed up in recent deal activity. In June, the company acquired Artisan Design Group. In October, it closed on the purchase of Foundation Building Materials. Both moves were aimed at strengthening its appeal with professional customers.

In its third-quarter earnings release, the company said expanding its professional offering is central to driving more consistent sales and profit growth. Professional sales have been improving, but the broader business has been slow to move. Comparable sales rose just 0.4% year over year in Q3, while total sales increased 3%. Net income declined 5%. Interest costs are also becoming more noticeable. Lowe’s Companies, Inc. (NYSE:LOW) now expects to pay $1.4 billion in interest expense for the year, up from a prior forecast of $1.3 billion. In Q3, the company reported $2.48 billion in operating income, with $352 million going to interest. Roughly 14% of net operating income is being used to service debt, and that share could climb if additional borrowing is required.

Lowe’s Companies, Inc. (NYSE:LOW) is one of the largest home improvement retailers in the US, selling products tied to building, maintenance, repair, remodeling, and decorating. The company also offers installation and related services, positioning itself as a one-stop shop for both homeowners and professionals.

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