Lowe's (LOW) will likely deliver roughly flat Q4 comparable sales, versus the consensus estimates for a 0.2% increase, RBC Capital Markets said in a note emailed Monday.

The investment firm forecasts Lowe's Q4 earnings per share to decrease 0.4% year on year to $1.92, versus the consensus estimate of $1.94.

RBC said it tightened its 2026 estimates for the company, leaving the comp estimates unchanged with an increase of 2.1%, versus the consensus estimate of a 1.8% increase, and raising the company's 2026 adjusted EPS forecast to $12.85 from $12.59 previously, which compares with the consensus estimate of $12.89.

Lowe's is scheduled to report its Q4 results on Wednesday.

RBC lifted the company's Q1 adjusted EPS forecast to $3.08 from $3.06 previously, citing tweaks to the investment firm's interest expense assumptions.

For 2026, RBC expects Lowe's management to release guidance for comps in a range of about flat to a 2% increase, versus the consensus estimate for a 1.8% increase.

The investment firm expects the company to release 2026 guidance calling for a decrease of about 30 basis points in its operating margin to about 11.8% to 12.0% due to "M&A dilution, and potential tariff headwinds, partially offset by continued productivity savings."

RBC raised Lowe's price target to $257 from $252 and has a sector perform rating on the company.

Price: 273.03, Change: -7.33, Percent Change: -2.61