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Home Depot stock downgraded at CFRA on near-term headwinds

Published 17/05/2023, 10:30 pm
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CFRA analysts downgraded Home Depot (NYSE:HD) shares to Hold from Buy following yesterday’s earnings report.

The stock closed 2.15% lower on Tuesday as earnings showed demand softness. The new price target for HD stock is $306 per share, down from the prior $340.

“Our positive long-term view on HD shares is tempered by near-term headwinds, including product pricing normalization, digestion of top-line growth (vs. 2019), and a forecasted remodeling decline in CY 24, per the JCHS Leading Indicator of Remodeling Activity,” the analysts said in a client note.

They highlight that big ticket sales fell 6.5% year-over-year while digital sales dropped 3%.

Overall, Home Depot shares are down 10.6% year-to-date.

 

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