Lowe's Q3 Better Than Feared; Uncertain Consumer, Soft Housing Market Still A Concern

Shares of Lowe’s Companies Inc (NYSE:LOW) remained volatile on Thursday, even after the company reported upbeat third-quarter earnings.

Here are some key analyst takeaways:

• DA Davidson analyst Michael Baker reaffirmed a Neutral rating, while reducing the price target from $266 to $250.
• JPMorgan analyst Christopher Horvers reiterated an Overweight rating, and raised the price target from $275 to $300.
• Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating, while lifting the price target from $285 to $305.

Check out other analyst stock ratings.

DA Davidson: Lowe’s CEO Marvin Ellison says homeowners have on average $400,000 in home equity on their balance sheets. Both Lowe's and Home Depot Inc (NYSE:HD) suggest that there is roughly $50 billion in home improvement underspend.

Coupling these metrics suggests "there is potential for a rebound in home improvement," Baker said in a note. "A bottoming or improvement in the housing cycle would likely help both HD and LOW, but we favor HD because of their higher margins and greater pro exposure," he added.

JPMorgan: Lowe’s third-quarter results were better than feared, Horvers said. He added that Lowe's management had a more optimistic tone than Home Depot's due to:

• Lowe's self-help driving Pro share and better performance in bigger ticket categories.
• Home Depot needing to reset numbers after its bullish tone following the second-quarter results.

Both Lowe's and Home Depot's comps comp improved on a two-year basis, "with the prospect of incremental replacement demand, modest EHS improvement, and a tick of inflation supporting a sustainable near 1% comp in 4Q and further marginal improvement in 2026," the analyst further wrote.

Telsey Advisory Group: Lowe’s comments were largely similar to what Home Depot shared a day earlier, indicating "an uncertain consumer, a soft housing market that is pressuring home improvement projects, and the negative impact on 2H25 sales from a lack of storms," Feldman wrote.

The analyst stated, however, that Lowe’s initiatives are driving market share gains, with "improved merchandise, higher penetration with small- to medium-sized Pros, and technology enhancements in areas like digital and marketplace." Lowe’s comp so far in November has been positive and better than that of Home Depot, he added.

LOW Price Action: Shares of Lowe’s had risen by 0.07% to $228.57 at the time of publication on Thursday.

Read More:

• Lowe’s Gets Analyst Praise As Results Top Home Depot On Key Metrics

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