Analyst Simeon Gutman from Morgan Stanley maintained a Buy rating on Home Depot and keeping the price target at $415.00.
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Simeon Gutman has given his Buy rating due to a combination of factors that highlight Home Depot’s potential for growth. The company’s recent quarterly results suggest that the housing market has reached its lowest point, and Home Improvement stocks like Home Depot are poised for a gradual recovery. This recovery is expected to drive earnings and enhance the stock’s valuation, as Home Depot’s management continues to maintain operational efficiency, preserving the potential for operating leverage when the market cycle improves.
Another key factor in Gutman’s rating is the positive trend in Home Depot’s comparable sales, marking the third consecutive quarter of growth after a period of decline. This improvement indicates that the housing market is stabilizing, and Home Depot’s strategic focus on professional and DIY customers is yielding results. Despite minor setbacks in earnings per share and operating income, the company’s gross margin has improved, and the outlook for future earnings remains strong, supporting the Buy recommendation.
According to TipRanks, Gutman is a 4-star analyst with an average return of 3.8% and a 61.69% success rate. Gutman covers the Consumer Cyclical sector, focusing on stocks such as Advance Auto Parts, Topgolf Callaway Brands, and Home Depot.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $450.00 price target.