Lowe’s Companies Inc (LOW) is getting a bullish outlook from Oppenheimer, with analyst Brian Nagel upgrading the company’s rating from Perform to Outperform. This optimistic outlook is fueled by the belief that home improvement demand will rebound as lending rates ease.
Nagel acknowledges that the home improvement sector might experience a lag in seeing the benefits of these easing rates, but he anticipates stronger sales for Lowe’s starting later in 2025. This anticipation is based on the historical trend observed during past Federal Reserve easing cycles.
While Lowe’s may continue to face challenges in the near term, with comparable store sales likely to remain negative through the first half of 2025, Nagel suggests that investors are increasingly adopting a long-term perspective. This means they are looking beyond the immediate challenges and focusing on the potential growth trajectory of Lowe’s and its competitor, Home Depot Inc (HD).
Lowe’s shares were up 0.63% to $263.94 at the time of publication on Tuesday. This positive market reaction reflects the confidence in the company’s future prospects, despite the current challenges in the sector.
