Lowe’s price target lowered to $293 from $304 at Bernstein

Bernstein lowered the firm’s price target on Lowe’s (LOW) to $293 from $304 and keeps an Outperform rating on the shares. The firm expects renewed inflationary pressure on the back of potential tariffs and wage inflation in 2025, which is a net positive for mass/club retailers, a net neutral for dollar retailers as consumers’ need to trade down is offset by higher labor costs, and a net negative for home improvement retailers as this could dampen the rate cut outlook. Historical evidence suggests that mass/club retailers generally see accelerated comp sales growth but experience gross margin pressure to a varying degree in inflationary periods.