As reported earlier, Wells Fargo analyst Zachary Fadem initiated select names within the home improvement, auto part retail, home furnishings, and specialty hardlines. The analyst notes that the pullback in some of these stocks related to "uncertainty around margins, global trade policy, and the sustainability of recently improving results", which replaced the enthusiasm from the anticipated consumer strength, rising wages, and tax reform benefits earlier this year, has produced some "compelling" long-term investment opportunities. Fadem initiated Home Depot (HD) and Lowe's (LOW) at Outperform with respective price targets of $205 and $100, saying home improvement is particularly attractive in retail today given the valuations in housing and demographics tailwinds. The analyst adds that the home improvement category has seen the most consistent growth in "consumer share of wallet" to 7.5% over the past 5 years, even though that level is still below 8.7% prior peak in 2005. Fadem's view on Bed Bath and Beyond (BBBY) is less upbeat with an Underperform rating and a $16 price target based on its limited growth opportunity, margin profile, differentiation, and e-commerce strategy. Similarly, the analyst profiles the auto parts retail offering some opportunity in terms of "lost share of wallet" sliding to 1.8%, below the 10-year average of 1.9%, while offering "attractive valuations" and an opportunity to regain its footing. Fadem initiates O'Reilly (ORLY) and AutoZone (AZO) with an Outperform rating and price targets of $260 and $700 respectively, adding that these two companies exceeded the industry growth even as auto parts retailers as a group trade at a 23% discount relative to the S&P500. The analyst also initiated select names in the Home Furnishings/Specialty categories, including At Home (HOME) at Outperform with a price target of $42, Tractor Supply (TSCO) at Outperform with a price target of $70, and National Vision (EYE) with an Outperform and a price target of $40. Fadem. All of these names earned a positive view based on the analysts Growth Opportunity and Concept Differentiation screens, with the last two also cited for their potential for near term improvement.

Barclays raised the firm's price target on Tractor Supply to $234 from $192 and keeps an Equal Weight rating on the shares ahead of the Q1 report. The company's core consumables still seems to be moderating, but potentially offset by seasonal drivers and gross margin strength, the analyst tells investors in a research note. The firm is not expecting any change in Tractor Supply's outlook.

Piper Sandler raised the firm's price target on Boot Barn (BOOT) to $110 from $94 and keeps an Overweight rating on the shares. The firm's 47th semi-annual Taking Stock With Teens Survey shows strong brand results for Carhartt and -- to a lesser extent -- Ariat - two key brands for Boot Barns and Tractor Supply (TSCO). Carhartt now ranks as the number 3 most favored clothing brand amongst teen males. Ariat has also risen in popularity and now ranks as the number 29 most favored clothing brand.