UPDATE: Jefferies Raises PT on Home Depot to $55

Jefferies raises its price target $5 to $55 Outperform-rated Home Depot

as the company exceeds its prior EBIT margin peak. Jefferies notes, "We hosted meetings with HD management in Atlanta yesterday. We walked away with greater confidence that double digit EBIT margins are well within reach this year, implying even stronger margins and earnings power when housing recovers. As solid as HD's performance has been over the past several years, we believe there is significant margin opportunity, which we expect will bring HD's EBIT margin above its previous peak of 11.8%." HD closed at $49.38 a share yesterday.