Lowe's (LOW) underperformance versus Home Depot (HD) may be at least partly attributable to its heavier exposure to the softer DIY channel, though Truist remains bullish on the home improvement market and views the stock as well-positioned at current levels.

The investment firm said in a Wednesday research note that Lowe's DIY sales account for about 70% of its business versus roughly 50% for Home Depot, and the channel's softer trends likely worked against Lowe's in Q2.

Lowe's Q2 comparable sales rose 0.2%, slightly ahead of broad investor expectations for a negative print but below the company's prior expectation of about 1%. Adjusted EPS excluding the benefit from tariff refunds was $4.29, above Truist's $4.24 estimate.

Truist noted that the comp marked Lowe's fifth straight quarter of positive comparable sales and improved from the first quarter on a two- and three-year stacked basis. While Lowe's moved its full-year outlook to the low end of its prior range, the brokerage said the change was relatively modest.

The analysts noted that Lowe's shares were already underperforming Home Depot year to date, down about 11% versus roughly 2% for Home Depot, and said the modest change to the outlook leaves the stock in a good position at current levels.

Truist maintained its buy rating and a $255 price target on the stock.

Shares of Lowe's were up nearly 3% in Wednesday trading.

Price: 221.69, Change: +6.05, Percent Change: +2.80