3 Home Depot Analysts On Q1 Earnings: 'A Flexible Business Model'

Zinger Key Points
  • Analyst Joseph Feldman maintained an Outperform rating with an unchanged $375 price target. 
  • “The solid demand trend, combined with multiple strategic initiatives, should drive continued outperformance,” the analyst said.

Home Depot Inc HD reported revenue and earnings ahead of Street expectations Tuesday and raised its full-year outlook. Here's what the Street has to say. 

Raymond James On Home Depot: Analyst Bobby Griffin reiterated an Outperform rating for the company while reducing the price target from $350 to $340.

Home Depot delivered strong quarterly results, he said. “Equally impressive, the three-year geometric stack comp for average ticket and total comp accelerated sequentially versus F4Q and May to-date trends are off to a solid start,” Griffin said in the note.

“While we sense some investors are concerned that the housing market could turn less favorable for HD following the step-up in interest rates via reduced housing turnover, we estimate this accounts for roughly 10% of HD’s sales any given year,” the Raymond James analyst further wrote.

Telsey Advisory Group On Home Depot: Analyst Joseph Feldman maintained an Outperform rating with an unchanged $375 price target. 

The company delivered a solid quarter “despite challenges from colder weather and a later start to the spring selling season and lapping a strong 1Q21 fueled by the pandemic and government stimulus,” Feldman wrote in a note to clients.

“The solid demand trend, combined with multiple strategic initiatives, should drive continued outperformance,” the analyst said. “Home Depot also has a flexible business model, which gives us confidence the company can achieve its new targets,” he added.

KeyBanc Capital Markets On Home Depot: Analyst Bradley Thomas reiterated a Sector Weight rating on Home Depot.

Although Home Depot first-quarter sales were encouraging and near-term trends remain healthy, “our macro and survey work in the Pro and Consumer areas suggests slowing trends on the horizon and growing risks to 2H and 2023,” Thomas wrote in his note.

HD Price Action: Shares of Home Depot were trading down 3.32% at $290.72 Wednesday morning, according to Benzinga Pro

Posted In: Bobby GriffinBradley ThomasJoseph FeldmanKeyBanc Capital MarketsRaymond JamesretailTelsey Advisory GroupAnalyst ColorEarningsNewsPrice TargetReiterationAnalyst Ratings