There's trouble ahead for Lowe's as it prepares to report earnings next week , according to Citi. Analyst Steven Zaccone downgraded shares of Lowe's to neutral from buy, and cut its price target, citing rising inflation and a tougher housing market that's increasingly weighing on the stock. "We see risk of a 2Q miss on SSS & EPS vs. Street with the potential to cut FY22 guidance given the weak 1H results. We believe the buy-side is bracing for a miss and guide-down, but we see less likelihood of a relief rally on cut guidance given the negative overhang of a slowing housing market," Zaccone wrote in a Thursday note. "Our core thesis to downgrade to Neutral ($205 TP) is based on a tougher macro backdrop, slowing DIY, rising promotional risk, and a tougher margin expansion path in a weaker sales environment," he wrote. The downgrade comes as investors worry that Lowe's will not get the boost it once did from do-it-yourself projects during the height of the pandemic, when Americans took advantage of extended time indoors to fix up and redecorate their homes. Now, consumers are dealing with rising prices and higher interest rates, and spending more on services and travel. "We anticipate slowing DIY spending will translate to increased promotional activity for discretionary big-ticket categories into the 2H22 and 2023," the note read. The analyst cut the price target to $205 from $222. The new target is a little higher than where shares closed Wednesday at $201.43. Shares of Lowe's are roughly 22% down this year, and more than 23% off its highs. Lowe's dipped more than 1% in Thursday premarket trading. —CNBC's Michael Bloom contributed to this report.