ISI Group Reiterates Hold, $25 PT on Lowe's

ISI Group maintains its Hold rating with a $25 target price on Lowe's LOW following initial reaction to the company's Q4 results. ISI Group says, "4Q results were modestly better than expected on a 3.4% comp, but gross margins declines accelerated; SG&A $s spend came in better than expected helped by tax rate to drive the $0.05 EPS beat. Comps were 3.4% vs our 2% (buyside expectations were likely in the 4% range after the 6.1% comp HD reported, so this result may be viewed with modest disappointment). LOW's EPS of $0.29 was above the street and our estimate of $0.24, or $1.68 for 2011." LOW closed at $27.16 a share on Friday.