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Lowe’s Reports Gains Despite Tough Market Conditions: 8 Analysts Break Down Q1 Results

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Lowe’s Companies Inc (NYSE:LOW) Tuesday reported better-than-expected results for its first quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

Goldman Sachs On Lowe’s Companies

Analyst Kate McShane reiterated a Buy rating, while raising the price target from $250 to $268.

Lowe’s comps improved sequentially throughout the quarter and management expects comps to remain flat in the second quarter and improve in the back half of the year, McShane said in a note. The company generated better-than-expected seasonal sales in the first quarter, he added.

Lowe’s delivered positive Pro comps, “despite continued macro pressures as the company’s focus on improving the Pro customer experience is paying off,” the analyst wrote. The company’s gross margin is expected to recovery in the back half of the year, he further stated.

Truist Securities On Lowe’s Companies

Analyst Scot Ciccarelli reaffirmed a Buy rating, while reducing the price target from $271 to $265.

Lowe’s comps came in lower by 4.1% in the first quarter, which was better than expectations of a decline of around 5.0%-6.0%, Ciccarelli said. Truist Card Data suggests an improvement in March and April after adjusting for the Easter shift, he added.

Pro comps were positive, versus flat in the previous quarter, while DIY sales remained under pressure due to “lower demand for bigger-ticket discretionary products,” the analyst wrote. “We continue to believe it is a matter of ‘when’ not ‘if’ sales accelerate, as people invest in their existing homes rather than purchasing something else (golden handcuffs) and/or simply adjust to higher rates,” he further stated.

DA Davidson On Lowe’s Companies

Analyst Michael Baker maintained a Neutral rating, while …

Full story available on Benzinga.com

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