Home Depot to Continue Share Gains Amid Choppy Macro Conditions, BofA Securities Says

Home Depot (HD) is set for continued share gains amid choppy macro conditions and expected pressure in 2024 following its Q1 results, BofA Securities said in a note.

“While the macro remains choppy, and we expect continued pressure in 2024 on discretionary and big ticket, we expect HD to see continued share gains as it accelerates growth and capabilities with the complex pro, both organically and inorganically,” BofA analyst Robert Ohmes said.

On Tuesday, the company reported better-than-expected Q1 EPS, supported by lower tax, while delayed spring & large project softness weighed on comparable sales.

The analyst said he expects the company’s strong exposure to pro customers, on-shelf availability improvements, value proposition, and strategic investments to support its comparative sales.

BofA raised its full-year estimate for Home Depot earnings per share to $15.15, from $15.10 previously, expecting higher interest income to offset the recent pause in share buybacks.

BofA reiterated its buy rating on Home Depot, with a price target of $425.

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