Jefferies Bullish on The Home Depot (HD) Following Mingledorff Acquisition

Core Viewpoint - The Home Depot, Inc. (NYSE:HD) is viewed positively by analysts following its acquisition of Mingledorff's, which is expected to significantly enhance the company's market position and growth potential in the HVAC distribution sector [2][3]. Group 1: Analyst Insights - Jefferies analysts express confidence in the acquisition of Mingledorff's, projecting an expansion of the combined Total Addressable Market (TAM) by $100 billion [2]. - The acquisition is anticipated to strengthen The Home Depot's long-term earnings power and growth narrative in the HVAC distribution vertical [2]. - BNP Paribas has adjusted its valuation model, lowering the target multiple from 19.5x to 17.5x EV/EBIT due to market conditions, while still supporting the acquisition as a strategic move [3][4]. Group 2: Ratings and Price Targets - Jefferies maintains a "Buy" rating on The Home Depot stock following the acquisition announcement [2]. - BNP Paribas has a "Neutral" rating on the stock and has reduced its price target from $391 to $348 [4].