LOW - BUY - A Solid Start to 2026—Balancing PRO, Online, & Services Strength with Solid Margin Control; $300 Price Target

研报英文原文证据摘录

LOW - BUY - A Solid Start to 2026—Balancing PRO, Online, & Services Strength with Solid Margin Control; $300 Price Target

May 20, 2026

Steven Forbes, CFA, CPA steven.forbes@guggenheimpartners.com LOW - BUY - A Solid Start to 2026—Balancing

212 381 4188 PRO, Online, & Services Strength with Solid Margin

John Heinbockel

john.heinbockel@guggenheimpartners.com Control; $300 Price Target

212 381 4135

Julio Marquez Key Message: As detailed within Exhibit 1, LOW's 1Q 2026 operating results broadly julio.marquez@guggenheimpartners.com (albeit slightly) exceeded our expectations—as evidenced by an ~80 basis point of 212 823 6605

net sales upside and a ~2% adjusted EBITDA beat. Importantly, despite weather-

Jacob Nivasch related disruptions at the start of the 1Q—with management noting significant store

jacob.nivasch@guggenheimpartners.com closures during one weekend in early February (resulting in an ~30 basis point 1Q

212 338 8837 comp drag)—strong Spring selling execution concurrent with strength in PRO comps

Max Horowitz (+2-3%), appliances (positive), online (+15.5%), and home services (positive) fostered a

max.horowitz@guggenheimpartners.com modest top-line beat. Bottom line, we continue to expect LOW's "Total Home Strategy"—

212 518 9974 anchored around a) expanding PRO penetration via extended aisles and new fulfillment

capabilities, b) accelerating online sales growth (with 1Q 2026 representing the fourth

consecutive quarter of double-digit growth), c) expanding home services, d) scaling

loyalty ecosystem, and e) increasing space productivity, to accelerate the company's

market share performance into 2027 (and beyond). We are reiterating our estimates,LOW BUY BUY-rating, and $300 12-month price target. Lowe's Companies, Inc.

Sector: Hardlines