Nomura Securities Maintains a 'Neutral' on Home Depot (HD); 3Q Review

Nomura Securities maintains a 'Neutral' on Home Depot (NYSE: HD) price target of $35.00.

Nomura analyst, Aram Rubinson, said, "Home Depot reported EPS of $0.60 versus consensus of $0.58. Results were strong across the board. The most surprising thing was that HD’s call seemed to speak a different language than Lowe’s (NYSE: LOW). For the only the second time in 30 quarters, HD reported a gross margin higher than LOW. Inventory positions also varied meaningfully. DSI at HD fell -5% to 87 days. DSI at LOW rose +2% to 105. LOW announced it was taking its target leverage ratio up to 2.5x lease-adjusted from 1.8x, HD announced it was taking its leverage target down to 2.0x from 2.5x. We raise our EPS estimates for HD slightly. Our new 2011 estimate is $2.35 (was $2.34). Our new 2012 EPS estimate is $2.70 (was $2.65)."

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 $38.07 yesterday.

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