Home Depot price target raised to $200 from $176 at Deutsche Bank
Deutsche Bank analyst Mike Baker raised his price target for Home Depot to $200 from $176 following yesterday's analyst day. The shares closed Wednesday down $2.03, or 1%, to $180.80. The key message from the analyst day is that the company is investing from a position of strength, Baker tells investors in a research note. The analyst notes Home Depot plans to double its investment spend over the next three years, focusing on merchandising, supply chain, marketing, and store operations. Baker, however, keeps his estimates largely unchanged as he sees "several areas" of potential upside to management's guidance, including sales, margins and buybacks. Further, Baker believes the home center model holds up well against online competition. He keeps a Buy rating on Home Depot.