Lowe's (LOW) posted softer fiscal Q2 comparable sales and moved its full-year guidance to the low end of its prior range, a reset largely anticipated by investors. RBC Capital Markets said Wednesday in a report.

As the company navigates a tougher demand backdrop and rising cost pressures, the revised outlook "feels appropriately prudent" and may improve the stock's appeal given its valuation discount to rival Home Depot (HD), the report said.

RBC cut Lowe's Q3 comparable-sales estimate to growth of 0.5% from growth of 1% and lowered its adjusted EPS estimate to $2.93 from $3.02.

Lowe's "flattish" revenue outlook may seem conservative, though cost pressures are likely to increase, the report said.

RBC expects 2026 comparable sales growth of 0.3%, down from 0.6% growth previously, and projects 2027 comparable-sales growth of 1%, down from its prior 1.8% estimate.

RBC maintained its sector-perform rating on Lowe's stock and its $231 price target.

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