) to hold.
Analyst Donald Trott regards Lowes as having considerable long term investment merit, but he thinks other things have changed. He thinks the valuation of home center co-leader Home Depot is still contracting, thereby putting a ceiling on Lowes' upside potential.
Trott says he is increasingly concerned about the effect of a potential stall in rising residential real estate values. Notwithstanding a correction, which he says has already occurred, Trott sees $1.73 fiscal 2003 (Jan.) EPS, and $2.08 for fiscal 2004.