Lowe’s Q4 Beat Triggers Target Hikes to $257 and $313
RBC Capital raised its Lowe’s price target to $257 from $252, and Bernstein lifted its target to $313 from $284 after January transaction data showed quarter-over-quarter acceleration. For fiscal Q4, Lowe’s beat EPS and revenue estimates, but shares declined on guidance projecting only 0.5% comparable sales growth.
1. Q4 Earnings Beat and Guidance
Lowe’s beat consensus on both adjusted EPS and revenue for fiscal Q4, then provided guidance calling for just 0.5% comparable sales growth in the coming quarter. This cautious outlook led investors to sell off shares despite the quarterly beat.
2. Analyst Price Target Hikes
On February 23, RBC Capital raised its price target from $252 to $257 and maintained a Sector Perform rating, citing January as the strongest month of the quarter. Earlier, Bernstein increased its target to $313 from $284, even after lowering its comparable sales forecast by 40 basis points to 0.5% due to winter storm headwinds.
3. Workforce Realignment
Lowe’s plans to cut about 600 corporate and support roles, representing less than 1% of its total workforce, to redirect focus and resources to store operations and frontline employees. The company will provide affected staff with financial assistance, continued benefits, and job placement support.