Oppenheimer analyst Brian Nagel upgraded Home Depot (HD) to Outperform from Perform with a $470 price target. Risks of a “significant, transitional-type setback” for home improvement retail have diminished and underlying demand growth within the space is apt to persist, even as pandemic tailwinds abate, Nagel tells investors in a research note. The analyst sees “continued solid, if not outsized,” sales and profit expansion at Home Depot and Lowe’s (LOW) “for the foreseeable future.” The analyst upgraded Home Depot and reiterates an Outperform rating Lowe’s after evaluating the nearer-term prospects for both in a normalizing, post-COVID-19 consumer backdrop.
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