New York, October 16, 2006--Goldman Sachs cut Home Depot rating while is upgraded Lowe's. The firm cut Home Depot's to neutral from buy, saying it is growing concerned about recent management departures, "which suggest a retail team that is increasingly stretched just as Home Depot is accelerating reinvestment in stores and needs top-tier retail talent."
Goldman upgraded Lowe's to buy from neutral, saying that with powerful footage growth, it believes the retailer is positioned to rebound when housing recovers. Goldman said it believes that Lowe's shares can appreciate in excess of 40% in the next two years assuming the housing cycle bottoms within that time frame.
