UPDATE: BMO Capital Markets Reiterates Home Depot at Market Perform, Raises PT
In a report published Tuesday, BMO Capital Markets reiterated a Market Perform rating on The Home Depot Inc. (NYSE: HD), and raised its price target from $54 to $72.
BMO Capital Markets noted, "3Q12 sales strength was pervasive as all three US divisions had positive comp-store sales and early November sales are “quite good.” The sales strength was buoyed by gains in both ticket and traffic as average ticket grew 2.9% to $54.55 and total transactions grew 1.8% to 331 million. Importantly, transactions over $900 (20% of sales) grew 4.3%, signaling to us that consumer spending on bigger-ticket projects (appliances, flooring, and in-stock kitchens) is accelerating. This notion is reinforced by a continuation of the pickup in the company's professional business (~30% of sales), notably in important geographic areas such as Northern California and Florida. [We] maintain our Market Perform rating, and raise our price target from $54 to $72."
Home Depot closed at $63.38 on Tuesday.
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Tags: BMO Capital Markets