Mizuho Securities analyst David Bellinger has reiterated their bullish stance on HD stock, giving a Buy rating yesterday.
David Bellinger has given his Buy rating due to a combination of factors including Home Depot’s recent positive U.S. comparable sales, which have shown growth for the first time in nearly two years. This positive trend is expected to continue, with demand in the home improvement sector beginning to rise, particularly in categories such as paint, appliances, and garden products. Additionally, the company’s online sales have seen a significant increase, supported by faster delivery times and a shift towards professional customers.
Furthermore, Home Depot’s upcoming analyst day in December is anticipated to reveal a new trade credit program, which could unlock substantial sales potential for larger professional customers. Despite some challenges with operating expenses affecting short-term earnings, the company’s solid fourth-quarter performance, with revenues exceeding expectations and adjusted EPS growth, supports the positive outlook. Bellinger also notes the high return on investment from Home Depot’s pro-related infrastructure investments, which are driving incremental sales in key markets.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $435.00 price target.