Lowe’s (LOW – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Zachary Fadem from Wells Fargo maintained a Buy rating on the stock and has a $285.00 price target.
Zachary Fadem’s rating is based on Lowe’s strategic acquisition of Artisan Design Group (ADG), which is expected to enhance its sales and open up a significant market opportunity. The acquisition, valued at approximately $1.325 billion, is anticipated to increase Lowe’s sales by adding ADG’s $1.8 billion revenue starting from the second quarter of 2025. This move is seen as a step towards inorganic growth, providing Lowe’s with access to a $50 billion total addressable market, particularly in the builder and environmental health and safety sectors.
Despite some uncertainties regarding the acquisition’s impact on margins and the timing of the deal, Fadem views it as a strategic fit for Lowe’s long-term growth. The purchase price aligns with Lowe’s historical deal valuations, and the acquisition positions the company to capture increased spending in the professional market and gain additional market share. While synergies with Lowe’s core business are not immediate, the potential for future integration and market expansion supports the Buy rating.
According to TipRanks, Fadem is a 5-star analyst with an average return of 10.0% and a 61.00% success rate. Fadem covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, Lowe’s, and Starbucks.
In another report released today, Jefferies also reiterated a Buy rating on the stock with a $309.00 price target.