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UPDATE: Citigroup Reiterates On Home Depot As Long-Term Growth Outweighs Slight Q3 Miss

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In a report published Wednesday, Citigroup analyst Kate McShane reiterated a Buy rating on The Home Depot, Inc. (NYSE: HD), and raised the price target from $95.00 to $110.00.

In the report, Citigroup noted, “Today's weakness in HD's shares presents a more attractive buying opportunity as the business was more or less in-line with solid expectations. The 5.2% comp was generated from both traffic and ticket increases, from strength in the U.S., Canada, and Mexico, and positive comps across all merchandise categories. In addition, HD's sales to large pro customers are growing at 2x the company average. Management implied a 5% Q4 comp and noted an upward bias to their estimate. Though comp growth has been decelerating, we are confident in the medium-term benefit from the ongoing housing recovery and we think it's reasonable to expect mid-single digit comp growth with operating leverage and robust buybacks for the foreseeable future.”

Home Depot closed on Tuesday at $96.50.

Latest Ratings for HD

DateFirmActionFromTo
Oct 2016PiperJaffrayDowngradesOverweightNeutral
Aug 2016CitigroupMaintainsBuy
Aug 2016Argus ResearchMaintainsBuy

View More Analyst Ratings for HD
View the Latest Analyst Ratings

Posted-In: Citigroup Kate McShaneAnalyst Color Price Target Analyst Ratings

 

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