An employee helps a customer shop for a sander at a Lowe's home improvement store in Chicago.

Piper Jaffray lowered its ratings on Home Depot and Lowe's to neutral from overweight after the firm's proprietary survey of homeowners found deteriorating sales trends in the coming year.

"Our 10th semi-annual homeowner survey suggests continued moderation in remodel spend," analyst Peter Keith wrote in a note to clients Monday.

"[We have] heightened concerns of promotional intensity in the space."