Home Depot, Floor & Decor downgraded to Hold at Gordon Haskett

Gordon Haskett analyst Chuck Grom downgraded Home Depot (HD) and Floor & Decor (FND), both to Hold from Buy, arguing that the combination of the negative feedback loop that began in early March and the wealth effect damage over the past few weeks will likely lead to a greater deferral of home improvement projects in the coming quarters, even with a drop in mortgage rates. While the firm says it remains “very fond of the management teams and believe there will ultimately be a time to re-engage on the long side,” the firm adds that recent developments and “arguably still elevated multiples” give it pause and make it think it is prudent to move to the sidelines. The firm has a $350 price target on Home Depot and a $75 target for Floor & Decor shares.