Home Depot, Inc. (HD)’s Price Target Cut By Citi

Core Viewpoint - The Home Depot, Inc. (NYSE:HD) is recognized as one of the best consumer cyclical stocks, operating over 2,300 stores across the US, Canada, and Mexico [1] Analyst Recommendations - As of November 28th, 19 out of 37 analysts rated The Home Depot as a Buy, with 14 Hold and 4 Strong Buy recommendations [2] - The average share price target for The Home Depot is set at $403.36 [2] Recent Analyst Coverage - Citigroup maintained a Buy rating for The Home Depot but lowered the share price target from $422 to $407 following the latest earnings report [3] - The company reported $41.35 billion in revenue for the fiscal third quarter, exceeding analyst estimates of $41.10 billion, but adjusted earnings per share of $3.74 fell short of the $3.84 estimate [3] Management Insights - Management cited lower consumer spending, weaker demand for home improvement products, and fewer storms as reasons for the profit cut [4] - CEO Edward Decker highlighted that home price appreciation, household formation, and housing turnover are currently under pressure, impacting demand [4] - There is an estimated $50 billion cumulative under spend in normal repair and remodel activity in U.S. housing, indicating a potential for future growth despite current pressures [5]