Jefferies Cuts Price Target on Home Depot (HD) to $149 Following 3Q
Jefferies maintained a Buy rating on Home Depot (NYSE: HD), and cut the price target to $149.00 (from $158.00), following the company's 3Q earnings report. Management indicated that it was on plan to deliver on the sales guidance for FY17. This implies a little over 3% for Q4 SSS, which is below the Street’s 4%.
Analyst Daniel Binder commented, "Instead of reacting positively to the upside in Q3 sales, the market is focused on the lack of an upward revision to sales for FY17. Implied is a Q4 SSS of ~3%, which is in line with our estimate but below the Street’s 4%. The market is also reacting to mgmt's comments around expense growth next year when it expects it to grow at about 50% of the rate of sales versus 32% this year (this yr. compared to higher expenses LY)."
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Shares of Home Depot closed at $124.40 yesterday.