Stifel Downgrades Lowe’s to Sell as Housing Risks Cloud Outlook

Stifel downgraded Lowe’s Companies, Inc. (NYSE: LOW) to Sell, citing housing uncertainty, increased competition and investment needs that could strain the retailer’s balance sheet.

The firm expects affordability challenges to limit home turnover and project spending. Separately, Stifel identified supply-chain inflation and manufacturer price increases as pressures on Lowe’s margins. It expects a weak home-improvement market and uneven October commentary from Lowe’s and Home Depot.

Stifel also expects Lowe’s specialty-trade performance may fall short of expectations, creating a headwind for fourth-quarter comparable sales.