Home Depot Upgraded at Raymond James on ’World-Class’ Execution
(Bloomberg) -- Home Depot upgraded to outperform from market perform at Raymond James as it continues to "execute at a world-class level" despite a challenging retail environment, analyst Budd Bugatch (establishes PT $165) writes in a note. HD is up 1% pre-market, partially recovering from a 2.7% loss after reporting 2Q earnings pre-mkt Tuesday.
- HD delivered "impressive" 2Q, scoring revenue, Ebitda, and EPS growth
- HD has demonstrated "interconnected retail capabilities" with 2Q eCommerce growth of ~23% y/y (~6.4% of sales)
- Separately, Citigroup sees share pullback as a buying opportunity for "one of the last consistently strong comping names in retail", analyst Kate McShane (buy) writes in a note
- Says HD has been competing for years in-store and online vs AMZN and SHLD; has "defensive qualities" vs AMZN
- HD to benefit from continuing home price appreciation and increasing household formation
- HD 21 buys, 10 holds, 0 sells, avg PT $171: Bloomberg data
- HD +12% YTD vs S&P 500 Retailing Index (S5RETL) +9%
- NOTE: Aug 15, Home Depot Boosts Full Year EPS Forecast, Beats Estimates
To contact the reporter on this story: Kailey Leinz in New York at kleinz1@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Scott Schnipper
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
Tickers HD US (Home Depot Inc/The)
People Beryl Bugatch "Budd" (Raymond James Financial Inc)
Kate McShane (Citigroup Global Markets Inc)
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