Street View: Home Depot to see sustained boost from elevated home prices

Applied Energetics

17/08/2022 12:36

** Home Depot Inc  HD.N  on Tuesday surpassed estimates for
quarterly results as demand from builders and higher prices
helped the biggest U.S. home-improvement chain cushion the blow
from a drop in store visits  urn:newsml:reuters.com:*:nL4N2ZS219
    
    TRENDS ROBUST
    ** Jefferies ("buy," PT: $392) believes elevated home prices
are likely to discourage homebuyers and continue to drive repair
and remodeling demand
    ** BofA Global Research ("buy," PO: $360) is encouraged by
HD's medium-term outlook as "the dominant retailer" in a
category that continues to grow off of elevated home pricing
levels
    ** Piper Sandler ("neutral," PT: $327) sees current steady
comp trends to strengthen going into Q3
    ** "We expect fading home equity extraction and declining
home sales to slow remodel spending - but execution remains
solid, and we currently don't see comp trends going negative" -
Piper Sandler
    ** Credit Suisse ("outperform," PT: $450) expects ongoing
strength from home equity will offset negative impact of slower
housing turnover
    ** Telsey Advisory Group ("outperform," PT: $375) says
strong home improvement demand is aided by elevated home prices,
healthy remodeling activity, and solid household formation
    ** "HD is not immune from elevated supply chain costs, but
the strong sales growth helped weather the pressure" - Telsey   

 (Reporting by Subhadeep Chakravarty in Bengaluru)
 ((subhadeep.chakravarty@thomsonreuters.com))