Lowe’s Companies (NYSE:LOW) stock’s rating was recently downgraded to Hold from Buy by Top-rated analyst Brian Nagel from Oppenheimer. Also, he lowered his price target on LOW stock to $230 (implying about 4.6% upside potential) from $275. Lowe’s Companies is a home improvement retailer that provides a range of products for maintenance, repair, remodeling, and decorating.
The analyst maintains a cautious stance about the home improvement sector due to its weak fundamentals. Nagel is concerned about other challenges in the sector, which include weak demand for discretionary goods and high borrowing rates.
However, Nagel expects the prospects of the sector to improve in late 2024 and into 2025. The analyst expects mortgage rates to fall, backed by potential interest rate cuts by the Federal Reserve this year, thereby encouraging more buyers to enter the housing market. This should support the performance of both Low and Home Depot (HD), two key players in the home improvement sector.
Is Lowe’s a Good Stock to Buy?
With 12 Buys and 10 Hold ratings, Lowe’s stock holds a Moderate Buy consensus rating. On TipRanks, the average LOW stock price forecast of $228.74 implies a 4% upside potential to current levels. The stock has gained 9.4% over the past year.
