UBS Maintains a 'Buy' on Home Depot (HD); Acquires Redbeacon
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Price: $339.01 +0.86%
Rating Summary:
25 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
Rating Summary:
25 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
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UBS maintains a 'Buy' on Home Depot (NYSE: HD) price target raised from $48 to $50.
UBS analyst says, "Redbeacon provides several benefits, but limited NT financial impact: Financial terms of the deal were not disclosed, but Redbeacon raised $7.4 mm in a venture financing round in 2010. Thus, HD likely paid a modest amount for the acquisition. Redbeacon is unlikely to make a meaningful P&L contribution any time soon, but HD scored a strong management team that operates this entity. HD should be able to leverage its store base and customer relationships with this asset."
"The home improvement retailers have shown a recent willingness to plant the seeds of develop ment to evolve with changing consumer preferences. Since this industry is migrating to e-commerce at a slower pace than other subsectors, it provides the chance for the companies to invest in a measured and deliberate manner. We expect that HD (and Lowe's (NYSE: LOW)) will continue to deploy capital to acquire assets like this (and LOW’s recent purchase of ATG)."
For an analyst ratings summary and ratings history on Home Depot click here. For more ratings news on Home Depot click here.
Shares of Home Depot closed at $44.51 yesterday.
UBS analyst says, "Redbeacon provides several benefits, but limited NT financial impact: Financial terms of the deal were not disclosed, but Redbeacon raised $7.4 mm in a venture financing round in 2010. Thus, HD likely paid a modest amount for the acquisition. Redbeacon is unlikely to make a meaningful P&L contribution any time soon, but HD scored a strong management team that operates this entity. HD should be able to leverage its store base and customer relationships with this asset."
"The home improvement retailers have shown a recent willingness to plant the seeds of develop ment to evolve with changing consumer preferences. Since this industry is migrating to e-commerce at a slower pace than other subsectors, it provides the chance for the companies to invest in a measured and deliberate manner. We expect that HD (and Lowe's (NYSE: LOW)) will continue to deploy capital to acquire assets like this (and LOW’s recent purchase of ATG)."
For an analyst ratings summary and ratings history on Home Depot click here. For more ratings news on Home Depot click here.
Shares of Home Depot closed at $44.51 yesterday.
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