Home Depot has agreed to pay $17.5 million to settle a 2014 data breach incident that exposed the payment card information of about 40 million customers. As part of the agreement, the home improvement retailer will employ a chief information security officer and maintain other data security practices to safeguard consumers’ data.
Home Depot (HD) has inked a settlement agreement with attorney generals of 46 U.S. states and the District of Columbia. According to the data breach settlement agreement, hackers had gained access to Home Depot’s self-checkout point-of-sale systems, installed malware and obtained customers’ payment card data from April through September 2014.
Last week, Home Depot reported upbeat 3Q results. Its earnings of $3.18 per share jumped 25.7% and topped the Street’s estimates of $3.08. Revenues of $33.5 billion grew 23.2% year-over-year and exceeded analysts’ expectations of $31.9 billion. (See HD stock analysis on TipRanks)
On Nov. 18, D.A. Davidson analyst Michael Baker lowered the stock’s price target to $295 (7.9% upside potential) from $315 and maintained a Hold rating. The analyst noted in a note to investors that the 3Q results were supported by “consistent” trends, improved comps visibility in 4Q and expense savings. However, Baker added that looking ahead the stock might not see much upside due to expectations of decelerating comps next year.
Meanwhile, the rest of the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 11 Buys and 3 Holds. The average price target stands at $308.14 and implies upside potential of about 12.7% to current levels. Shares have gained about 25.2% year-to-date.
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