Barclays Maintains an 'Overweight' on Home Depot (HD); Management Meeting Takeaways

Barclays maintains an 'Overweight' on Home Depot (NYSE: HD) price target of $41.00.

Barclays analyst says, "November has comped positive thus far versus 8% LY...Management highlighted the ongoing mechanization of the company's RDCs, which should boost margins in 2011 and 2012...Management discussed the company's updated capital initiatives, including its recent dividend increase as well as plans to reach 15% ROIC by the end of fiscal
2013, complete its $6.8B repurchase authorization by fiscal 2014 and target a total adjusted debt-to-EBITDAR of 2.0x going forward. Additionally, management remains committed to a 10% EBIT margin by the end of fiscal 2013. Our $3.09 EPS estimate for 2013 incorporates a 10.2% EBIT margin."

"We remain positive on Home Depot: We are maintaining our EPS estimates of $2.40 for 2011, $2.73 for 2012 and $3.09 for 2013. Note that we are $0.02 above consensus for 2011. Home Depot is one of our top picks and is one of only five Hardlines names (out of 17) that we rate Overweight."

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 $38.96 yesterday.

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