Lowe’s Cos. LOW, -2.59% shares shed 2.8% in early Monday trading after the home improvement retailer was downgraded to neutral from outperform at Wedbush. Analysts cut the price target to $210 from $225. Wedbush cites weakness in the housing sector in its note, saying that existing home sales dollar turnover has peaked with minimal growth forecast for 2022. Less affordability and limited supply are also putting the squeeze on sales. “Accordingly, very tough comparisons could result in mid-single-digit decline average comps for Home Depot and Lowe’s for the next four quarters (vs. consensus for low-single-digit decline), and very low single-digit comps from 2Q-4Q22 (vs. consensus mid-single-digit increase) in our base case scenario analysis,” the note said. Analysts maintained their neutral rating on Home Depot Inc. HD, -1.41% Wedbush analysts led by Seth Basham also say homeowners have been making renovations to accommodate work-from-home lifestyles. “Should companies require employees to work at the office full-time when the pandemic ends, this spending could slow,” the note said. Lowe’s stock has gained 21.6% for the year to date while the S&P 500 index SPX, -0.06% is up 17.5% for the period.
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