Citi's Take on Lowe's 1Q10 10-Q, Still Recommends Home Depot (LOW, HD)

Citi analyst Deborah Weinswig reiterated a Hold rating for Lowe's (NYSE: LOW).

Lowe's has a target price of $28.00, according to Weinswig. LOW is currently trading at $23.55.

Citi recommends Home Depot (NYSE: HD) over Lowe's, as it believes HD can deliver better EPS growth as it benefits from merchandising and supply chain transformations.

Weinswig had this to say about the 10-Q: "LOW’s 1Q10 topline results benefited from certain one-time items, including the “Cash for Appliances” rebate program, the federal homebuyer tax credit program, and favorable weather in March and April. Looking ahead to 2Q10, we are concerned that increased promotional activity in the market and stronger competition from HD could pressure sales and margins."