Oppenheimer Believes Home Depot (NYSE: HD) Still Has Room to Grow

By Carrie Williams

Oppenheimer analyst Brian Nagel reiterated a Buy rating on Home Depot (NYSE: HD) today and set a price target of $178. The company’s shares closed yesterday at $157.33, close to its 52-week high of $158.15.

Nagel observed:

“We look upon the better than expected Q1 (Apr.) results and now modestly higher FY17 (Jan. 2018) guidance that Home Depot (HD) issued this a.m. as another very solid report from a superb operator. Q1 EPS of $1.67 easily topped a Street estimate of $1.61, driven by a US comp sales gain of +6.0%. For long while, we have identified HD as a top pick in the Hardlines sector and the overall Home Improvement group as a “bright spot” within an otherwise lackluster spending backdrop.”

According to TipRanks.com, Nagel is a 3-star analyst with an average return of 1.5% and a 50.8% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Dick’s Sporting Goods, and Advance Auto Parts.

Currently, the analyst consensus on Home Depot is Strong Buy and the average price target is $166.20, representing a 5.6% upside.

In a report issued on May 2, RBC Capital also reiterated a Buy rating on the stock with a $158 price target.

Home Depot’s market cap is currently $189.3B and has a P/E ratio of 24.39. The company has a book value ratio of 43.6806.

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