Citi Reports On HD $1B Share Repurchase Program

Citi has issued a report on Home Depot's HD plan to refinance a debt maturity. According to Citi, "HD announced that it would issue $2B of new debt to refinance a $1B March 2011 debt maturity and repurchase $1B worth of shares through an accelerated share repurchase (ASR) agreement. We view the ASR as a vote of confidence by management in HD's business. Additionally, while it has been our view that HD has the capacity to take on additional debt to repurchase shares, the ASR program came sooner than we expected." HD has a Buy Rating and a $46.00 Price Target. HD closed at $36.65 yesterday.