RBC Cuts Lowe’s (LOW) Price Target to $252 After Q3 Results

Core Insights - Lowe's Companies, Inc. reported Q3 2025 earnings with revenue of $20.8 billion, reflecting a 3.2% increase year-over-year [3] - RBC Capital reduced its price target for Lowe's from $260 to $252, maintaining a Sector Perform rating, citing better-than-expected performance and strong Pro customer activity [2] - The company updated its full-year outlook, projecting comparable sales to remain "roughly flat" and full-year revenue around $86 billion, with adjusted diluted earnings per share expected at approximately $12.25 [4] Financial Performance - Q3 revenue reached $20.8 billion, up 3.2% from the previous year [3] - Full-year revenue projection is about $86 billion, with an adjusted operating margin near 12.1% [4] - Capital expenditures are anticipated to be up to $2.5 billion for the year [4] Strategic Focus - Lowe's emphasizes disciplined capital allocation aimed at long-term value creation, having spent $8.8 billion on the acquisition of FBM and distributed $673 million in dividends during the quarter [3] - The company remains a leading home improvement retailer, catering to both individual consumers and professional contractors [5]