Morgan Stanley: Lowered Home Depot (NYSE:HD) price target to $340 Maintain overweight rating

Morgan Stanley analyst Simeon Gutman lowered his price target on Home Depot (NYSE:HD) to $340 from $360 and maintained his overweight rating on the stock. Based on the assumptions mentioned on the fourth-quarter call, same-store sales fell 5 percent and EBIT margin was 14 percent, which would reduce fiscal 2023 earnings per share by about 12.5 percent year-over-year to $14.6, about 13 percent below consensus expectations, the analyst said. While Home Depot’s shares were lower with the downward revision of its FY2023 EPS forecast, the analyst added that the guidance did not address the market’s biggest near-term concern, namely a slowdown in the top line for a traditionally cyclical category; So even with a lower than Wall Street consensus expectations, the stock remains at risk.

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