Guggenheim analyst Steven Forbes reiterated a Buy rating and $120.00 price target on Lowe's (NYSE: LOW) even though 1Q GM performance was disappointing. The US comps were up 4.2%, inclusive of ~150 basis points of commodity deflation.

The analyst listed 3 reasons to buy shares stating "Considering that a) the majority of the margin miss was due to "unplanned" product cost increases—which should be transitory in nature, b) Spring seasonal is still ramping while 2H comp compares ease, and c) LOW's strategic plan remains on schedule, we would be BUYers on today's under-performance (1,200 basis points vs. S&P 500)".

For an analyst ratings summary and ratings history on Lowe's click here. For more ratings news on Lowe's click here.

Shares of Lowe's closed at $97.94 yesterday.