Bernstein Cuts Lowe's Price Target Amid Delayed Home Improvement Recovery

Bernstein SocGen Group has lowered its price target for Lowe's Companies (Lowe's) to $254 from $261, while maintaining an Outperform rating. The stock currently trades at $200.80, near its 52-week low of $199.34, down 24% over the past year.

The firm cited a delayed home improvement recovery as the reason for the reduction in price target. According to Bernstein, the latest data suggests that the timing of the rebound remains uncertain, although the long-term need to renovate persists due to the rising median age of U.S. owner-occupied houses, now at 42 years.

Macroeconomists are projecting rate hikes rather than rate cuts, which will not help improve housing turnover or the affordability of home improvement projects. Lowe's trades at approximately a 4.5 times discount to Home Depot compared with the long-term average of around 3 times.