Goldman Sachs Maintains Buy Rating, $43 PT On HD

The Home Depot, Inc. HD announced a $2 billion senior note issuance, made up of two $1 billion tranches – a 4.40% senior note due April 2011 and a 5.95% note due April 2041, Goldman Sachs reports. “Half of the issuance will be used to take out a $1 billion 5.20% senior note due in March 2011, and the remaining $1 billion is designated for an accelerated share repurchase,” Goldman Sachs writes. “We had already modeled $3.2 billion of buybacks in 2011 compared to prior guidance of $2.5 billion. The company now expects $3.5 billion of 2011 repurchases, including the announced ASR program.” Goldman Sachs is maintaining its Buy rating and $43 PT on Home Depot, which closed Monday at $36.65.