Lowe's Analysts Boost Their Forecasts After Upbeat Q4 Results

Lowe’s Companies Inc LOW posted better-than-expected fourth-quarter results on Tuesday.

Lowe’s reported fourth-quarter FY23 sales of $18.60 billion, beating the analyst consensus estimate of $18.45 billion. EPS of $1.77 beat the consensus estimate of $1.68, according to data from Benzinga Pro.

Comparable sales decreased 6.2% Y/Y due to slow DIY demand and unfavorable January winter weather, while Pro customer comparable sales remained flat flat Y/Y.

“This quarter we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO.

For FY24, Lowe’s expects revenue of $84 billion-$85 billion (against the Street view of $85.61 billion) and adjusted EPS of $12.00 – $12.30 vs. consensus of $12.95. The company expects comparable sales to decline about 2% to 3% in FY24.

Lowe’s shares gained 1.4% to trade at $238.73 on Wednesday.

These analysts made changes to their price targets on Lowe’s after the company reported quarterly results.

• Wedbush raised the price target on Lowe’s from $215 to $250. Wedbush analyst Seth Basham maintained a Neutral rating.
• JP Morgan increased the price target on Lowe’s from $265 to $268. JP Morgan analyst Christopher Horvers maintained an Overweight rating.
• Truist Securities boosted the price target on Lowe’s from $244 to $258. Truist Securities analyst Scot Ciccarelli maintained a Buy rating.
• RBC Capital raised the price target on Lowe’s from $190 to $246. RBC Capital analyst Steven Shemesh maintained a Sector Perform rating.
• Morgan Stanley raised the price target on Lowe’s from $240 to $250. Morgan Stanley analyst Simeon Gutman maintained an Overweight rating.

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