Oppenheimer Believes Home Depot (NYSE: HD) Still Has Room to Grow

Oppenheimer analyst Brian Nagel assigned a Buy rating to Home Depot (NYSE: HD) today and set a price target of $178. The company’s shares opened today at $163.62, close to its 52-week high of $167.94.

Nagel wrote:

“We look quite favorably upon the better than expected Q3 (Oct.) and now higher FY17 (Jan. 2018) guidance that Outperform-rated Home Depot (HD) reported today. Recent natural disasters, and particularly hurricanes Irma and Harvey, proved pivotal to HD in the recent period. Per management estimates, hurricane-related spending lifted total company comps by about 1.2% pts. in Q3 (Oct.), to +7.9%. We have opined a lot upon the ability of HD and other leading chains to capitalize upon hurricane- related spending. We very much admire the efforts of HD to step up and further endear themselves to customers in times of need. For us, the key to understand is the elevated hurricane-related spending could represent an incremental driver for sales for several quarters to come.”

According to TipRanks.com, Nagel is a 3-star analyst with an average return of 0.8% and a 51.8% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Lululemon Athletica Inc, and Dick’s Sporting Goods.

Currently, the analyst consensus on Home Depot is Strong Buy and the average price target is $174, representing a 6.3% upside.

In a report issued on October 30, RBC Capital also reiterated a Buy rating on the stock with a $179 price target.

Home Depot’s market cap is currently $195.3B and has a P/E ratio of 23.76. The company has a book value ratio of 54.9462.

Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is neutral on the stock.

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