Street View: Lowe's acquisition of Foundation Building Materials is well-calculated risk
** Lowe's Cos LOW.N said on Wednesday it will acquire Foundation Building Materials (FBM) for $8.8 billion, deepening its reach into the contractor and builder supply market
** Median PT of 37 brokerages covering the stock is $277.5 - LSEG data
HAMMERING OUT A PRO STRATEGY
** Bernstein ("outperform," PT: $279 ) sees co's entry into "complex" Pro segment, which involves more specialized needs and services, as a strategic yet risky response to competitive pressure from Home Depot and QXO
** J.P.Morgan ("overweight," PT: $283) views Lowe's FBM deal as a strategic growth move that expands market reach without straining capital discipline, though it warns that future sector deals could be rushed amid rising competitive pressure
** TD Cowen ("hold," PT: $245) sees Lowe's acquisition of FBM as a strategic move that strengthens its Pro offering, enhances competitiveness with Home Depot, unlocks tech and synergy benefits, and justifies pausing buybacks
** Truist Securities ("buy," PT: $283) says Lowe's stands to benefit from pent-up demand for home repairs and improvements, as homeowners remain locked into their properties under the 'golden handcuff' effect
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