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Lowe's shares drop on JP Morgan downgrade

An employee works in the paint department at a Lowe's store in Louisville, Kentucky.
Luke Sharrett | Bloomberg | Getty Images

Shares of Lowe's dropped more than 1 percent Wednesday after JPMorgan lowered its rating on the company's stock.

The consumer environment has become "increasingly difficult," wrote JPMorgan analyst Christopher Horvers in a note to clients. Horvers downgraded the stock to "neutral" from "overweight," and gave it a price target of $72, down from a previous target of $87.

"We believe an uneven consumer environment, difficult comparisons ahead, higher exposure to big ticket spending among a declining backdrop of consumer confidence, and a stepped up promotional atmosphere lead to a challenging environment in 2017," he said.

The downgrade came after a report that consumer confidence retreated in October, after back-to-back monthly gains. Consumers felt the economy would continue to expand but a more moderate pace, according to data from The Conference Board.

A spokesperson for Lowe's did not immediately respond for CNBC's request for comment about the note.

The company's stock is down more than 11 percent year to date.

LOW 2016 Chart