Home Depot initiated with a Hold at Stifel

Stifel initiated coverage of Home Depot (HD) with a Hold rating and $350 price target. The firm, which has “a positive bias to the home improvement category,” says Home Depot and Lowe’s (LOW) have achieved leadership in U.S. home improvement retail and argues that both are “likely to build upon their leading positions.” While the firm believes Home Depot is better positioned to lead category growth, supporting a sustained premium valuation for the shares, it is cautious on the amplitude of the category recovery with interest rates remaining elevated, which drives its “bifurcated approach to Home Depot and Lowe’s.”