Lowe’s downgraded to Perform from Outperform at Oppenheimer

Oppenheimer downgraded Lowe’s to Perform from Outperform with a price target of $230, down from $275. The analyst assumes a more cautious near-term stance towards home improvement retail. The structural underpinnings of home improvement retail remain intact and the firm stays upbeat upon longer-term prospects for the sector and leading operators, the analyst tells investors in a research note. That said, Oppenheimer is “fretting that shorter-term market positioning towards” Home Depot and Lowe’s “is turning too complacent and that shares might not discount adequately for potential persistent fundamental weakness at the chains” in January of 2025. The firm says the upcoming initial 2024 outlooks “could prove unfavorable catalysts for shares.” Investors looking to play prospects for strengthening trends in the sector beginning later in 2024 are likely to be presented better entry points in coming weeks and months, writes Opco.