Market Overview

Wedbush Downgrades Lowe's, Believes Best Days Of The Housing Cycle Are Behind Us

Share:
Wedbush Downgrades Lowe's, Believes Best Days Of The Housing Cycle Are Behind Us

Wedbush downgraded Lowe's Companies, Inc. (NYSE: LOW) to Neutral from Outperform citing limited room for expansion as it believes the best days of housing are likely gone.

Citing various data points, the brokerage expects modest slowdown in underlying home improvement sales growth ahead, while weaker consumer confidence would pressure near-term trends.

“At the same time, LOW’s operational and merchandising momentum may have slowed, making it challenging to close the comp and margin gap with Home Depot Inc (NYSE: HD), which we believe is key for relative share price outperformance,” analyst Seth Basham wrote in a note.

Meanwhile, the analyst pointed out underwhelming earnings reports from competitors such as Tractor Supply Company, and home improvement suppliers such as Whirlpool, Masco Corp and Sherwin-Williams.

Accordingly, Basham cut his 2016/2017 EPS estimates to $3.97/$4.61 from $4.02/$4.78 and revenue estimates to $67.74 billion/$68.25 billion from $64.96 billion/$68.59 billion. The revised forecast is below consensus estimate of $4.02/$64.89 billion for 2016 and $4.71/$68.46 billion.

The analyst also slashed his price target to $73 from $84.

Latest Ratings for LOW

DateFirmActionFromTo
Aug 2019MaintainsBuy
Aug 2019MaintainsOverweight
Aug 2019MaintainsOverweight

View More Analyst Ratings for LOW
View the Latest Analyst Ratings

Posted-In: Seth Basham Wedbush SecuritiesAnalyst Color Downgrades Price Target Analyst Ratings Real Estate Best of Benzinga

 

Related Articles (HD + LOW)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
GMLPReiterates10.0
JWNReiterates29.0
DSGXInitiates Coverage On43.0
ZMAssumes115.0
LOGMAssumes77.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Following Q3 Results, Here's Where Eli Lilly Investors' Focus Is Turning

Under Armour CEO Kevin Plank Defends 'Get Big Fast' Strategy