Oppenheimer upgrades Lowe's to outperform, says hot stock can rise another 20%

A customer pushes a shopping cart towards the entrance of a Lowe's store in Concord, California, on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images

Lowe's is set to be a winner in the stock market's rotation over the next year even after being a stay-at-home winner during the pandemic, investment firm Oppenheimer said Thursday.

Analyst Brian Nagel said in a note to clients that he had taken a cautious stance toward the home improvement retailer after its business boomed during the pandemic last year, but the rotation into cyclical stocks and the relative cheapness of Lowe's warranted an upgrade to outperform from perform.