both fell around 2% on Friday, following downgrades from
which worries that the stocks’ rallies have largely run their courses.
Analyst Brian Nagel cut his rating on Home Depot (ticker: HD) and Lowe’s (LOW) to Perform from Outperform, and lowered his price targets to $305 from $320, and to $180 from $185, respectively. While he still likes the long-term outlook for the stocks, he worries that the recent gains have made them pricey, while comparable sales will enviably slow from their pandemic highs.
Nagel is concerned that the “market is becoming too lax toward chances of a post-Covid-19 sales growth downshift at Home Depot/Lowe’s and potential impact on shares,” especially as the stocks, up about 26% and 34% year to date, are trading above their pre-pandemic peaks.
Of course, no one