Citigroup Meets With Home Depot Management, Maintains Buy Rating

Citigroup has published a research report on Home Depot HD after meeting with company management. In the report, Citigroup writes "We hosted upbeat meetings with HD management. The company remains confident that it can achieve its positive LSD SSS plan in 2011, and we believe upside to comps could be driven by a rebound in the housing market, market share gains, and improvement in HD's Pro business (4% of customers who represent 30% of sales), which has shown signs of life recently. The company also has many levers to pull to drive margin improvement, and we believe HD could exceed its guidance for a 10% EBIT margin by 2013. Our estimate is 10.8% in 2013." Citigroup maintains its Buy rating and $46 price target. Home Depot closed yesterday at $36.62.