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Analyst recommendations
Of the 34 Home Depot (HD) analysts, 67.6% made purchase recommendations, while 32.4% left it out. On average, the target for 12-month analysts for Home Depot is $ 205.86. upside potential of 7.4% from its price of $ 191.76 on May 15th.
On May 15, Oppenheimer raised its HD price target from $ 200 to $ 215. Morgan Stanley raised its price target from $ 200 to $ 210 on April 15th. On May 7, RBC lowered its price target from $ 223 to $ 217.
Peer comparison
Of the 32 analysts who followed Lowe's Companies (LOW), 68.8% made "buy" recommendations, while 32.2% gave it a "retention". 9.8% of its current price of $ 107.62.
Of the 25 analysts covering Williams-Sonoma (WSM), 4.0% made purchase recommendations, while 76% gave it "reservations" and the remaining 20% recommended "sales." The 12-month analysts' target for WSM is $ 56.41, which represents a potential upside of 6.0% over the current price of $ 53.20.
Of the 22 analysts covering Bed Bath & Beyond (BBBY), 9.1% made purchase recommendations, while 72.7% gave it "reserves" and 18.2% "sales" . The 12-month average target price of 17.87 USD for BBBY implies a potential upside of 17.2% over the current price of 15.25 USD.
Multiple valuation
On May 15, Home Depot traded at a multiple of 18.5x PE, up from 16.8x at the beginning of the year. The 11.6% increase in Home Depot's inventory since the beginning of the year has resulted in an increase in its valuation multiples. In comparison, his Lowe's, WSM and BBBY peers traded at multiple futures PEs of 17.0, 11.4 and 7.6, respectively.
Strong sales growth per store and higher margins allowed Home Depot to trade at a higher PE multiple than its peers.
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