Investing.com -- Shares in Lowe's inched down in U.S. premarket trading on Wednesday after analysts at Stifel downgraded their rating of the home improvement retailer to "hold" from "buy."
In a note to clients, the analysts cited a "more cautious approach" to Lowe's fiscal year 2024 and uncertainty over its ability to "contend with a more anemic category."
Last month, Lowe’s (NYSE:LOW) slashed its full-year financial guidance, saying it was hit by a larger-than-anticipated pullback in consumer spending on big-ticket products in its third quarter.
The North Carolina-based group said it now expects to deliver annual adjusted diluted earnings per share of about $13.00, down from its prior outlook of $13.20 to $13.60. The projection for total sales was also cut to approximately $86 billion from a range of $87B-$89B.
Lowe's announcement pointed to somewhat dour expectations for its current quarter, which includes the crucial holiday shopping season. Like rival Home Depot (NYSE:HD), the firm has faced a slowdown in purchases of pricier items, in a sign that inflation-squeezed customers are reining in spending on major at-home projects.