12:08 PM EST, 12/12/2024 (MT Newswires) -- Lowe's (LOW) has evolved into a "high-quality retailer," and is now well-positioned to accelerate growth and capture market share as the home improvement industry recovers, Wedbush said in a note Thursday.

"Lowe's systems and processes are now well above average, and the company is leaning into additional tech investments - many powered by AI - to capture growth opportunities in [do-it-yourself] and Pro," Wedbush analysts Seth Basham and Matthew McCartney wrote in the note.

Wedbush expects home improvement sector to "return to growth" in H2 2025, supported by "pent-up demand" post-pandemic with improving customer sentiment, and potentially lower interest rates.

However, the company has a larger exposure to an underperforming DIY market, intense competition from the likes of Home Depot (HD) and possible headwinds from tariffs and labor shortages.

Wedbush stays "sidelined" on Lowe's with a neutral rating and a $250 price target.

Lowe's shares were down 1.6% in recent trading.

Price: 263.59, Change: -4.31, Percent Change: -1.61