Shares of Lowe's (LOW 1.87%) were moving higher today after the company got an upgrade from Barclays, lifting its rating and price target on the home-improvement retailer.
As of 10:06 a.m. ET, the stock was up 2.5% on the news.
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Why is Lowe's up today?
Barclays analyst Seth Sigman raised his rating to overweight based on valuation and pent-up demand. Sigman expects improvement in demand in the sector from higher-income customers due to changes in tax policy from the "big, beautiful bill."
The analyst also said value-oriented retailers should benefit from pressure on low-income consumers and called out improvements in the company's DIY and pro business. He raised his price target from $259 to $285, implying a 16% upside based on yesterday's closing price.
NYSE: LOW
Key Data Points
What's next for Lowe's
The home-improvement sector has struggled in recent years due to the slowdown in the housing market, but there are signs of a thaw as mortgage rates have edged lower and pending home sales in November were the strongest they've been since 2023.
At a price-to-earnings ratio of 21, Lowe's isn't exactly cheap, but it is trading at a discount to the S&P 500. If the housing market continues to improve, Lowe's stock should follow suit.
