Goldman Sachs: Home Depot Fails to Meet Expectations
According to a research report from Goldman Sachs this morning, Home Depot (NYSE: HD) came up short with expectations from investors 1Q.
Goldman Sachs explained, “Two areas of focus follow. (1) Current tone: Management had already guided 2Q SSS to the lowest level of the year, due in part to sales pull forward into 1Q. We expect the firm to reiterate guidance, and we will look for confidence in the notion of acceleration into 3Q. (2) Margin targets: HD is likely to hike long-run margin color, from a target of 10%, likely to be achieved in FY12, to the 11%-12% range. With ongoing tight expense control, we see this as quite feasible, as we detail within.”
Home Depot closed yesterday at $48.76 as Goldman Sachs maintains its Neutral rating and $53 PT.
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