Bernstein analyst Zhihan Ma maintained a Hold rating on Home Depot (HD – Research Report) today and set a price target of $421.00.
Zhihan Ma has given his Hold rating due to a combination of factors, primarily focusing on Home Depot’s recent financial performance and future guidance. The company showed a positive shift in its quarterly performance, marking the first positive comparable sales in two years, with net sales exceeding expectations. However, despite these improvements, the gross margin and adjusted EBIT margin did not meet consensus expectations, indicating some underlying challenges.
Moreover, Home Depot’s guidance for the upcoming fiscal year fell short of market expectations, with projected growth figures and margins slightly below consensus estimates. While there is potential for the company’s guidance to be conservative, especially with the expected benefits from strategic initiatives in the latter half of the year, the current outlook suggests a cautious approach. These mixed signals contribute to the Hold rating, as the stock may not outperform the market in the near term.
According to TipRanks, Ma is a 2-star analyst with an average return of 0.6% and a 50.00% success rate. Ma covers the Consumer Cyclical sector, focusing on stocks such as Dollar Tree, Costco, and Dollar General.
In another report released today, HSBC also upgraded the stock to a Hold with a $410.00 price target.