Home Depot price target lowered to $320 from $335 at Credit Suisse

Credit Suisse lowered the firm’s price target on Home Depot to $320 from $335 and keeps a Neutral rating on the shares. The firm notes Home Depot’s comps fell into the negative territory in Q4 for the first time since Q1 2011. In Credit Suisse’s view, this is a sign that the COVID related home improvement elevated sales is officially over, with the homeowner shifting its share of wallet out of home improvement and into other, more service-oriented categories and showing more sensitivity on elasticities. Overall, while the firm continues to believe Home Depot is a best-in-class retailer and should remain a share gainer in the category, given its superior supply chains and Pro leadership, results show it is not immune to the change in consumer shopping patterns and industry headwinds, which could linger through 2023.