Stifel has lowered its price target on Lowe’s (NYSE:LOW) to 240 from 250, maintaining a Hold rating after the company’s fiscal Q1 2025 earnings report. Although the earnings results modestly exceeded expectations, Stifel expresses caution regarding the outlook for the rest of the year and beyond.

The company maintains its 2025 earnings per share forecast at the lower end of Lowe’s guidance, citing uncertainties about sustaining revenue momentum. Although Q1 demonstrated an uptick in comparable sales, Stifel believes the pace of growth for Q2 is insufficient to inspire confidence in achieving full-year targets.

In addition, competitive pressures from Home Depot impact Lowe’s profitability goals. Stifel anticipates Lowe’s stock will remain stable in the short term as investors weigh the doubts surrounding future sales performance against its valuation compared to retail peers.