Analyst Steven Zaccone from Citi maintained a Buy rating on Home Depot (HD – Research Report) and keeping the price target at $433.00.
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Steven Zaccone has given his Buy rating due to a combination of factors that highlight Home Depot’s strategic growth initiatives and financial stability. The recent announcement of Home Depot’s intention for SRS to acquire GMS for $5.5 billion is a significant move that aligns with the company’s strategy to expand its business offerings. GMS, a distributor specializing in building products, complements SRS’s existing operations and presents a substantial growth opportunity.
Furthermore, the acquisition is financially sound, as it is expected to be accretive to Home Depot’s earnings on an adjusted basis in the first full year. Despite the acquisition, Home Depot remains committed to reducing its leverage ratio to 2.0x by the end of fiscal 2026, which will enable the company to resume share repurchases. The strategic fit of GMS with SRS and the expected financial benefits underscore Zaccone’s confidence in Home Depot’s ability to navigate current market challenges and capitalize on growth opportunities.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $420.00 price target.