On Friday, Oppenheimer downgraded both Home Depot and Lowe’s to perform from outperform and lowered their price targets marginally. The firm disclosed that it still finds both companies favorable in the intermediate to longer-term stance, as shifts in consumer demands in the real estate and home improvement space are going to continue to fluctuate. Yahoo Finance’s Final Round panel break down the firm’s call and discuss the details.
MYLES UDLAND: All right, welcome back to The Final Round here on Yahoo Finance. Time now for our call of the day. And today, we’re talking about Oppenheimer’s latest shares of Home Depot and Lowe’s, the firm downgrading both stocks to perform from– outperform. So overall, basically, kind of, I guess, pulling back maybe on these two names and saying that the boom we saw in the home improvement space during the early part of the pandemic is likely to cool or at least create some sort of challenge for these businesses, you know, in the months ahead.
And I think it’s interesting to see this call Seana in the context of maybe some of the tech analysts, who we’ve talked about a lot, continuing to chase stocks higher or to try to back into why some, you know, pie in the sky valuation actually makes sense. And here we have an analyst saying, yeah, look, a lot of great things about home building, great trends going forward. But the rush that we saw into these kinds of names and into their business through June and July they don’t see as quite as durable and quite as convincing, at least over the near-term.
SEANA SMITH: Yeah, Myles, because of that, because of that theory, because of their reasons as to why they’re making this call, I think a lot of