Stifel upgrades Home Depot to Buy on revenue acceleration

Stifel upgraded Home Depot (HD) to Buy from Hold with a price target of $425, up from $405, following the Q1 report. The firm is surprised the shares didn’t rally yesterday post earnings, with accelerating comparable sales through fiscal Q1 “the key positive takeaway,” with April U.S. comparable sales up nearly 2.5%. This performance demonstrates Home Depot’s “idiosyncratic advantages,” suggesting upside potential to its reiterated fiscal year guidance, the analyst tells investors in a research note. Stifel now has increased conviction in the company’s revenue acceleration. It tells investors to “own the best house” in the sector.