Jefferies on Home Depot (HD): Mingledorff's acquisition 'rounds out' pivot

Jefferies analyst Jonathan Matuszewski reiterated a Buy rating and $454.00 price target on Home Depot (NYSE: HD)

The analyst commented, "The announced acquisition of Mingledorff's expands Home Depot's & SRS Distribution's aggregate TAM by $100B and provides a solid foundation for future growth in the HVAC distribution vertical. We continue to believe HD's consolidation of the building products distribution landscape will support LT earnings power. Reiterate Buy... This asset rounds out HD's recent strategic pivots toward roofing and building products, interior and construction products, landscape, and pool with a foothold in HVAC. With HVAC distribution EBITDA margins generally LDD%, we expect this business to operate below the core HD retail business, though anticipate cross-selling synergies to materialize over time."

For an analyst ratings summary and ratings history on Home Depot click here. For more ratings news on Home Depot click here.

Shares of Home Depot closed at $330.90 yesterday.

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