Our 12-month target of $238, up $17, is 19.5x our FY 25 EPS view of $12.20 (down $0.06; FY 26’s down $0.28 to $13.48), a premium to historical averages. Our P/E reflects LOW’s productivity initiatives, improved customer service, and improving rate cut expectations. FQ1 (May) EPS of $3.06 (-16.6% Y/Y) beat by $0.10 on revenue of $21.4B (-4.4% Y/Y), 1% above consensus. Comp sales declined 4.1% on a 1% ticket contraction and a 3.1% transaction count decline. Notably, Pro and online sales achieved growth in Q1, with Pro backlogs flat Y/Y. Gross margin of 33.2% declined 50 bps due to investments, promotions, and a decline in credit revenue. SG&A advanced 140 bps to 18.8%, netting a 200-bp EBIT decline to 12.4%. Despite the top- and bottom-line beat, FY 25 guide remains unchanged. We see the roll-out of the loyalty program as necessary in meeting a stressed consumer. LOW assures its productivity runway is not over, with its transformation only one third underway. Our DCF valuation indicates shares are fully valued.