Citi Reiterates Buy on Home Depot

Citi is out with its report today on Home Depot HD, reiterating Buy. In a note to clients, Citi writes, "HD's 1Q11 EPS results were encouraging despite soft SSS, as the company remains focused on driving gross margin improvement and managing expenses. We believe that HD's merchandising tools and supply chain transformation are yielding benefits, setting the stage for SSS outperformance. We continue to see upside to the company's 2011 EPS guidance of $2.24, and we reiterate our Buy rating." Citi maintains a $46 PT on HD. At the time of posting, shares of HD were trading pre-market at $36.29, up 0.86% from Wednesday's close.