Slow Sales Trends Drives Neutral Rating On The Home Depot, Inc. (HD)

Piper Jaffray is out with a company note, where it maintains its “neutral” rating on The Home Depot, Inc. HD; it has also slightly lowered its price target to $27.00 from $28.00. Piper Jaffray cited the company’s recent earnings report, where HD delivered a Q2 EPS of $0.72, barely topping analyst and consensus estimates. Analysts noted, “Total sales came in lighter than expected driven by total comp store sales growth of +1.7% (US +1%) vs. our total comp estimate of +0.5% and consensus of +3%.” The analysts at Piper Jaffray added, “While we continue to believe the business is being managed well, with margin expansion likely due to operational improvements, we believe top-line results will continue to be pressured given weak macro-economic factors in housing and employment.” Shares of HD are currently priced at $28.78, up 1.66% in this morning’s trading session.