UPDATE: Stifel Nicolaus Downgrades Lowe's Companies to Hold on Valuation, Housing Level-Off
Stifel Nicolaus downgraded Lowe`s Companies (NYSE: LOW) from Buy to Hold and removed the price target of $37.00.
Stifel Nicolaus commented, "We upgraded LOW ($38.64, Hold) in April 2009 (EHS had slowed to just 4 mm). [Our upgrade was] centered around [the] company admitting / addressing [its] shortcomings in the midst of massive housing retrenchment that would, we believed, eventually give way to a better backdrop. [The upgrade was] too early, so we wouldn't be surprised to see some symmetry and be early here, too. We are downgrading … LOW from Buy to Hold based on valuation and a potential “leveling off” of housing market improvement. Our “bull case” valuation in our DTBO (discount to build-out) models suggest shares are fairly valued."
Lowe`s Companies closed at $38.64 on Wednesday.
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