Lowe’s Hold Rating: Navigating Tariff Uncertainty and Post-Pandemic Consumer Behavior

Citi analyst Steven Zaccone has maintained their neutral stance on LOW stock, giving a Hold rating on March 9.

Steven Zaccone has given his Hold rating due to a combination of factors impacting Lowe’s. One significant concern is the uncertainty surrounding tariffs, particularly the additional 10% tariff on Chinese goods, which complicates the company’s ability to model future financial impacts. This uncertainty is compounded by ongoing negotiations with vendors and potential changes in consumer behavior if inflation rises.
Additionally, Lowe’s faces sourcing challenges, with a significant portion of its goods coming from international markets, including China and Mexico. The company is also navigating post-pandemic consumer behavior, where demand patterns have shifted, adding complexity to forecasting. To maintain margins, Lowe’s management is focusing on labor hour management as a key strategy, especially if sales do not meet expectations. These factors contribute to the Hold rating as they present both challenges and uncertainties for Lowe’s future performance.

In another report released on March 9, Stifel Nicolaus also maintained a Hold rating on the stock with a $270.00 price target.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LOW in relation to earlier this year.