Home Depot Still A Buy, According to Goldman Sachs

The Home Depot, Inc. HD is having its 2010 estimates increased to $1.91 (+$0.05), and raising 2011/2012 estimates $0.02 and $0.03, respectively to $2.17 and $2.63, according to Goldman Sachs. The biggest challenge Home Depot faces is that faded sales visibility is limiting the relationship between sales trends and historically dependable macros, Goldman reports, and thus guidance is being based on recent trends. Goldman writes that Home Depot did beat out estimates in its 2Q, reporting clean inventory and repurchasing of stocks aggressively, while removing fixed costs and smooth management of variable costs. Goldman maintains its Buy rating and $34 price target. The Home Depot, Inc. closed yesterday at $28.31.