UPDATE: Stifel Nicolaus Downgrades Home Depot to Hold on Valuation, Housing Growth Rate Change

Stifel Nicolaus downgraded Home Depot

from Buy to Hold and removed the price target of $69.00. Stifel Nicolaus noted, "We upgraded HD in June 2007 as existing home sales pace were sliding off a cliff – having fallen from 7 mm to 5 mm in just two years. … [Our upgrade was] centered around [the] company admitting / addressing [its] shortcomings in the midst of massive housing retrenchment that would, we believed, eventually give way to a better backdrop. [The upgrade was] too early, so we wouldn't be surprised to see some symmetry and be early here, too. We are downgrading HD … from Buy to Hold based on valuation and a potential “leveling off” of housing market improvement. Our “bull case” valuation in our DTBO (discount to build-out) models suggest shares are fairly valued." Home Depot closed at $66.44 on Wednesday.