Citi Reiterates Hold On Lowe's

Citi Investment Research is out with a research report on Lowe's Cos Inc LOW as it perused through the company's 10-Q. It has a Hold rating and a $28 price target on shares. In a note to investors, Citi writes, "LOW delivered a soft quarter in 1Q11, and we believe the company continues to face significant headwinds in the second quarter, owing to a soft housing market recovery, high gas prices, and stronger competition from HD. Additionally, we believe May SSS may have been in negative territory as unfavorable weather YOY weighed on sales during the month, and elevated gas prices continued to weigh on discretionary spending. Management also stated that consumers remain cautious with big ticket discretionary spending due to declining home prices and low housing turnover. We reiterate our Hold rating and $28 target price for LOW." Shares of LOW gained 12 cents yesterday to close at $22.99, a gain of 0.52%.