Lowe's (LOW) fiscal Q2 results were largely in line and provided further evidence that its long-term strategy is gaining traction, UBS said in a note on Wednesday.

The analysts said the market was concerned that prolonged housing weakness and a cautious consumer were hurting home improvement demand, but Lowe's results suggested the opposite, with demand holding up better than expected.

Despite weather disruptions, softer seasonal demand, weaker DIY activity, and more aggressive competition, the company delivered positive comparable sales and stable underlying demand, including continued growth with professional customers, the analysts said.

"More importantly, we believe the quarter provided further evidence that management's long-term strategy is working," the analysts added.

The analysts lowered their earnings per share estimates to $12.25 for fiscal 2026, $12.85 for fiscal 2027, and $14.30 for fiscal 2028, from $12.55, $13.55, and $15.42, respectively.

UBS lowered its price target on Lowe's to $275 from $285 and kept its buy rating.

Price: 218.40, Change: -1.60, Percent Change: -0.73