Street View: Lowe’s faces tariff pressures, but may have the strategy to prevail

Home improvement retailer Lowe's LOW.N posted a smaller-than-expected drop in Q1 sales on Wednesday and said it plans to keep its pricing competitive, without ruling out the possibility of price hikes on some items due to tariffs

Median PT of 37 brokerages covering the stock is $260 - data compiled by LSEG

STRATEGY, AND SKEPTICISM

RBC ("sector perform," PT: $242) believes co could face $2 billion-$3 billion in incremental tariff-related costs; says that with Home Depot HD.N signaling it will hold prices steady, Lowe’s has limited pricing flexibility

Bernstein ("outperform," PT: $266) believes co is well-positioned to benefit from a market rebound due to its strong DIY customer base

"We remain cautious about home improvement demand" - Bernstein

BofA ("buy," PO: $290) says despite macro uncertainty and delayed DIY recovery, Lowe’s Total Home strategy, PPI (Productivity, Performance, and Improvement) efforts and inorganic growth should drive market share gains

D.A. Davidson ("neutral," PT: $240) views Lowe’s positively, citing a return to positive same-store sales and effective tariff mitigation strategies that keep it competitive with Home Depot