UPDATE: Nomura Raises PT to $63 on Home Depot Following Strong Quarter
Nomura increased its price target from $55 to $63 on Home Depot (NYSE: HD) but reiterated its Neutral rating on lack of upside in comparison to peers.
Nomura noted, "Another strong quarter for HD, with EPS upside driven by stronger-than-expected comps. '13E EPS raised to $3.60 (fr $3.50) and '14E to $4.15 (fr $4.00). HD is in something of a capital efficiency loop: strong EBITDAR growth allows for aggressive shr buyback (~$4b for '12) without higher leverage (adj Debt/EBITDAR is 1.7x, below its 2.0x ceiling). PT from $55 to $63, on a ~9x multiple of '14E EBITDA. Despite strong execution, mkt share gains, and stock performance YTD, we stay at Neutral – see greater opportunity in LOW (Buy, $38) and SHW (Buy, PT $170)."
Home Depot closed at $63.38 on Tuesday.
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