Home Depot To See Sales Stabilization And EPS Growth In 2024, Analyst Builds Bull Case
Portfolio Pulse from Lekha Gupta
Barclays analyst Seth Sigman upgraded The Home Depot Inc (HD) to Overweight from Equal-Weight and increased the price target to $372 from $325. Sigman is optimistic about Home Depot's exposure to housing and potential strengthening of home prices. He anticipates sales stabilization and EPS growth in 2024, with a return to normal growth in 2025. The forecast includes weak near-term comps but stabilization through 2024, stable gross margins, and SG&A benefits from cost reductions. The FY24 EPS estimate is $15.47, slightly below consensus, with FY25 EPS estimates raised to $16.61, matching consensus. Home Depot shares are trading higher by 0.49% at $339.92.

January 04, 2024 | 6:29 pm
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Barclays analyst Seth Sigman upgraded Home Depot to Overweight and increased the price target to $372, citing sales stabilization and EPS growth in 2024. The stock is expected to benefit from housing market exposure and cost reductions.
The upgrade to Overweight and the increase in price target by a reputable analyst are strong positive signals for investors, indicating an improved outlook for Home Depot. The specific mention of sales stabilization and EPS growth in 2024, along with cost reductions, are likely to be viewed favorably by the market, potentially leading to a short-term increase in the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100