LOWE'S COMPANIES (-) : Low growth and de-rating

研报英文原文证据摘录

LOWE'S COMPANIES (-) : Low growth and de-rating

EQUITIES

GENERAL RETAIL

UNDERPERFORM TARGET PRICE EPS 01/27e EPS 01/28eLOWE'S COMPANIES PRICE* USD221.1  TARGET PRICE USD202 (DOWNSIDE 9%)  -11%  -3%  -5%

Low growth and de-rating

See our first look for thoughts on the Q1 print and reaffirmed guide. Shares are +1.3% vs. S&P50021 MAY 2026

Securities Research Report +1.1%.

Production time: 11:10* (London time)

Research Analysts & Publishing Entities The key issue: The macro’s still stuck, and so too is Lowe’s

Chris Bottiglieri, CFA LOW's execution around cost cuts have been highly impressive. However, we're now in the 4th year

BNP Paribas Securities Corp1 of a sluggish housing environment with no immediate line of sight for improvement (absent a swift

(+1) 646 342 2463

christopher.bottiglieri@us.bnpparibas.com resolution to Middle East conflict coinciding with a modest slowdown in growth). It feels like

competing in complex pro is becoming table stakes and LOW is falling further behind here given its

Ian Davis

B/S position so it's difficult to get too constructive in shares particularly given LOW's overweightBNP Paribas Securities Corp1

(+1) 212 710 9784 exposure to DIY amidst a slowing consumer in the final stages of burning off tax refund stimulus.

ian.m.davis@us.bnpparibas.com

5 things that stood out to usHunter Lawson

BNP Paribas Securities Corp1 1) Q2 guidance seems to imply op. margins coming down ~110bps Y/Y (Figure 2) which suggests

+1 934-233-7189 ~60bps of added pressure outside of M&A, and… 2) …Mgmt. called out fuel-related pressures for

hunter.lawson@us.bnpparibas.com

op. margin in Q2 while HD (=) commentary seemed to suggest it could be a pressure though the

company has offsets in place. 3) While LOW has managed costs in inflationary environments well