Lowe’s may be catching up to Home Depot in the Pro business after its recent M&A move

Bank of America weighed in on Lowe’s Companies (NYSE:LOW) after hosting management at its 2025 Housing Symposium. The home improvement retailer’s acquisition of Artisan Design Group was one of the topics that prompted BofA to keep its bullish view. Following the deal, Lowe’s (NYSE:LOW) is seen as more leveraged to the homebuilding segment of the market and in a position to compete with Home Depot (HD) in different areas of the Pro business.

Artisan Design Group was described as a leading nationwide provider of design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops, to national, regional and local homebuilders and property managers. With fiscal 2024 revenue of approximately $1.8 billion, a national network of over 3,200 specialized installers and long-standing relationships with single-famil,y and multifamily homebuilders as well as property managers – Dallas-based ADG is seen expanding Lowe’s Pro offering into a new distribution channel within a highly fragmented, approximately $50 billion market.

The acquisition of Artisan Design Group is viewed as a $50 billion incremental total addressable market opportunity, supported by an estimated 18 million new homes needed in the US by 2033. “We expect ADG to benefit from LOW’s purchasing scale, private brands (e.g. Stainmaster flooring), and adjacent categories (e.g. appliances, windows and doors, millwork),” highlighted BofA analyst Robert Ohmes. Lowe’s (LOW) is also seen being able to access an incremental customer base through ADG’s 3,200 independent contractors in new homes, separate from LOW’s existing network of independent contractors primarily focused on existing homes.

Shares of Lowe’s (LOW) are up 3.1% since the ADG Deal was announced.