Stifel analyst John Baugh lowered his comp and EPS estimates slightly for Home Depot ahead of its report of second quarter results on August 20, citing adverse weather, delayed recovery in housing activity, commodity lumber deflation and weak home improvement spending. However, Home Depot shares are essentially at his previous price target of $210 and "faced with the question of changing a rating versus increasing the target price," he decided on raising his price target to $230 and keeps a Buy rating on the stock as Home Depot. The stock provides a safe dividend and he feels investors looking for a retail name will want to invest in Home Depot based on its management team, market leadership position and U.S. focused sales, Baugh stated. His Q2 comp growth estimate is now 20 basis points lower for Home Depot at 2.8%, but his 2.0% comp growth estimate for Lowe's is unchanged, Baugh noted.

Erste Group downgraded Home Depot to Hold from Buy.