UPDATE: Deutsche Bank Initiates HD Supply at Buy on Adjusted Forecast Estimates

In a report published Tuesday, Deutsche Bank analyst John G. Inch initiated coverage on HD Supply HDS with a Buy rating and $28.00 price target.

In the report, Deutsche Bank noted, “We are launching coverage of HD Supply with a Buy rating and 12-month price target of $28. HD Supply completed its successful IPO in July 2013. Our adjusted forecast estimates (excluding intangibles amortization) are $1.75 in 2014 and $2.55 in 2015. Our rapid EPS growth forecast is driven by above-average market sales expansion, declining interest expense, significant structural tax benefits and step-down in intangibles amortization.”

HD Supply closed on Monday at $23.00.