Tuesday, Mizuho initiated coverage on Home Depot (NYSE:HD), giving the home improvement retailer a Buy rating and setting a price target of $415. The firm's optimistic outlook is based on an anticipated increase in transaction count growth, which is expected to benefit from a sector recovery in the second half of 2024.
The new coverage arrives as Home Depot's guidance for a 1% comparable sales (comps) decline in the fiscal year 2024 appears conservative. This projection might signal an end to negative revisions by analysts. Furthermore, any potential cuts in Federal Reserve rates could help the company return to high single-digit percentage earnings growth.
Mizuho's positive stance is also influenced by Home Depot's ongoing investments in its stores and a comprehensive range of services aimed at professional contractors. These factors are believed to set Home Depot apart from its competitors and position it for continued market share gains within the $950 billion market.
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