Jefferies Reiterates a Buy Rating on Home Depot

By Carrie Williams

In a report released yesterday, Daniel Binder from Jefferies reiterated a Buy rating on Home Depot (NYSE: HD), with a price target of $149. The company’s shares closed yesterday at $124.40.

Binder said:

“Instead of reacting positively to the upside in Q3 sales, the market is focused on the lack of an upward revision to sales for FY17. Implied is a Q4 SSS of ~3%, which is in line with our estimate but below the Street’s 4%. The market is also reacting to mgmt’s comments around expense growth next year when it expects it to grow at about 50% of the rate of sales versus 32% this year (this yr.”

According to, Binder is a 4-star analyst with an average return of 2.4% and a 56.6% success rate. Binder covers the Services sector, focusing on stocks such as Ollie’s Bargain Outlet Holding, United Stationers Inc., and Container Store Group.

Currently, the analyst consensus on Home Depot is Moderate Buy and the average price target is $150, representing a 20.6% upside.

In a report issued on October 31, Oppenheimer also assigned a Buy rating to the stock with a $140 price target.

The company has a one year high of $139 and a one year low of $109.62. Currently, Home Depot has an average volume of 5.17M.

Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HD in relation to earlier this year. Most recently, in December 2015, Timothy Crow, the EVP HR of HD sold 34,386 shares for a total of $4,596,720.