Lowe’s downgraded to Neutral from Buy at DA Davidson

DA Davidson downgraded Lowe’s (LOW) to Neutral from Buy with an unchanged price target of $270. The analyst cites valuation for the downgrade. With the stock outperforming year-to-date and Lowe’s valuation at the highest it has been since early on during the pandemic, both on an absolute and relative basis, the shares “are due a pause,” the analyst tells investors in a research note. The firm says Lowe’s margin gap with Home Depot (HD) has narrowed five years in a row and now stands at just 90 basis points.