Barclays Maintains an 'Overweight' on Home Depot (HD); Raising Our Above Consensus Estimates

Barclays maintains an 'Overweight' on Home Depot (NYSE: HD) price target raised from $38 to $41.00.

Barclays analyst says, "Strong performance at The Home Depot continues: We believe the company's strong performance from 2Q likely continued into and throughout 3Q, with the following components contributing to the strength: Sales of emergency response products...The company's Rapid Deployment Centers (RDCs) are enhancing the supply chain and thus providing a benefit to gross margin...We believe Home Depot capitalized on the volatility in its share price due to stock market conditions to continue its aggressive buyback program."

"We are raising our 3Q EPS estimate from $0.58 to $0.59 (based on comps of 3.7%), 2011 EPS estimate from $2.38 to $2.40 (based on comps of 2.7%) and 2012 EPS estimate from $2.70 to $2.73 (based on comps of 2.8%). We are also initiating our 2013 EPS estimate of $3.09 (based on comps of 2.5%). Note that we are above consensus on 3Q. For 2011, our prior estimate of $2.38 was already the high on the Street (estimates were in a range of $2.29 - $2.38) and our current estimate of $2.40 is $0.05 above consensus of $2.35 and $0.06 above company guidance of $2.34."

For more ratings news on Home Depot click here and for the rating history of Home Depot click here.

Shares of Home Depot closed at $35.80 yesterday.

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