RBC Capital analyst Deane Dray lowered his price target on HD Supply to $38 and kept his Sector Perform rating after its in-line Q2 results and below-consensus Q3 earnings guidance at the mid-point. The analyst notes that the market was likely caught off guard by the "sudden" slowing in the company's end market expectations for the back half of 2019, adding that investors were also left without a "satisfying explanation" from HD Supply management about the company's compressing growth. Given the "short-cycle pressures at hand", Dray sees no "compelling reason" to be constructive on the stock.