UBS Reiterates Buy on Home Depot (HD) Following 1Q EPS Beat
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Rating Summary:
25 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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UBS reiterated a Buy rating and $150.00 price target on Home Depot (NYSE: HD) following the company's 1Q earnings report. HD reported EPS of $1.44, ahead of the consensus estimate of $1.35. The company raised FY16 EPS guidance to $6.27 (from $6.12-$6.18).
Analyst Michael Lasser commented, "We think HD's 1Q results that included $1.44 of EPS (UBSe $1.38, cons. $1.35) were representative of a retailer maintaining its momentum. Its 6.5% SSS exceeded the cons. est. by 130 bps & we think should stand on its own. The market's expectations might have been slightly higher, but certain influences on the comp were hard to prognosticate like the weather. Notably, it estimated $250 mm of sales (120 bp of comp) were pulled forward into 1Q. But, only $40-$50 mm of seasonal sales (20-25 bps of comp) were likely drawn from future categories. Putting aside this noise, it's clear that the HI cycle is still in its sweet spot. Looking forward, we believe its top-line will benefit from less FX pressure on International sales, continued strength in big ticket and pro sales, and improving interconnected retail capabilities. As such, our outlook remains positive for HD."
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 $132.00 yesterday.
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