Home Depot (HD) Company Visit Notes and Quarterly Checks -Jefferies

Jefferies analyst, Daniel Binder, visited the Home Depot (NYSE: HD) headquarters yesterday and continues to pursue operational initiatives aimed at improving the customer and associate experience while reducing cost, localizing assortments, growing the Pro business, reducing inventory, and improving in-stocks. Cost out initiatives will also give it the financial flexibility to invest in price to counter promotional activity that started in Q1 and continues in Q2.

Q1 promotional activity continues in Q2. Management highlighted that the promotional activity that it saw in Q1 has continued in Q2, but seemed fairly confident that it could counter the activity with its own price investments. Cost out initiatives will continue to serve as a source of funding for price investment and we believe HD has the financial flexibility to achieve its targets.

Seasonal sales have improved after a pause in April and May. Management did not comment on current sales trends but the analysts checks suggest seasonal businesses have improved as weather turned in markets that had more challenging weather earlier in the season.

No change to Buy rating or price target of $156.00

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 $125.24 yesterday.

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