Telsey Advisory Sees Long-Term Strength in Lowe’s (LOW) Despite Target Reduction

Core Viewpoint - Lowe's Companies, Inc. (NYSE:LOW) is recognized as a strong investment opportunity, particularly for long-term investors seeking high-quality dividend stocks [1] Group 1: Financial Performance and Strategy - Telsey Advisory has reduced its price target for Lowe's from $305 to $285 while maintaining an Outperform rating, indicating confidence in the company's ability to outperform the industry [2] - The third-quarter results showed that Lowe's is making steady progress under its Total Home strategy, with online sales increasing by 11.4% and strong double-digit growth in home services [3] - The acquisition of Foundation Building Materials (FBM) was completed in October, which is expected to enhance Lowe's product lineup and revenue opportunities, particularly for Pro customers [4] Group 2: Capital Allocation and Dividend Policy - Lowe's is committed to disciplined capital allocation, having spent $8.8 billion on the FBM acquisition and distributed $673 million in dividends during the quarter [5] - The company has a strong track record as a dependable dividend payer, boasting 60 consecutive years of dividend growth [5] Group 3: Company Overview - Lowe's is a leading home improvement retailer offering a wide range of products, including construction materials, maintenance supplies, and home decor items [6]