This home improvement stock has lagged in 2026. Citi says it's time to buy

Price Target

$285

Citi's target price for Lowe's stock, indicating potential upside.

Potential Upside

26%

The expected increase in Lowe's stock price from its current closing price.

Home Improvement Market Growth

4.1% CAGR

Projected annual growth rate of the home improvement market until 2035.

⦿ Executive Snapshot

What: Citi upgrades Lowe's to buy ahead of earnings report.
Who: Citi analyst Steven Zaccone, Lowe's Companies Inc.
Why it matters: Indicates optimism in a recovering home improvement sector despite economic uncertainties.

Citi upgraded Lowe's rating from neutral to buy, maintaining a $285 price target.
The price target suggests a potential upside of 26% from Monday's closing price.
Lowe's is set to report first-quarter results on May 20, with analysts expecting only marginal growth.
Citi believes Lowe's will outperform market estimates and has shown consistent same-store sales growth.
The home improvement market is projected to grow at a CAGR of 4.1% to $1.4 trillion by 2035.

The home improvement industry has faced challenges, but Citi suggests it has now bottomed out.
Lowe's has outperformed Home Depot in same-store sales for three consecutive quarters, indicating a competitive edge.

Immediate market implications include a potential stock price increase following the earnings report.
Long-term, Lowe's may benefit from a DIY-led recovery as consumer interest in home improvement remains strong.

Economic uncertainties and geopolitical tensions, such as the Iran war, could impact consumer sentiment.
A weak housing backdrop may still pose challenges for growth in the home improvement sector.

The upcoming earnings report on May 20 will be a key indicator of Lowe's performance.
Continued same-store sales strength will signal ongoing recovery in the home improvement market.