Deutsche Bank Provides Color on Home Depot, Hold

Deutsche Bank provided color on Home Depot (NYSE: HD) after meeting its management. In a research report published today, Deutsche Bank commented on the restructuring program underway at Home Depot. Overall, Deutsche Bank's comments are positive.

In the report, Deutsche Bank states, "HD is in a multi-year philosophical evolution towards more EDLP pricing and less promotional activity overtime. As such, HD is not likely to match LOW's 5% of on private label credit purchases. We believe this is a positive long term development as it allays fear of irrational pricing. HD is halfway through its labor management improvement plan that seeks to go from a 60%/40% tasking to customer facing mix in store labor hours to 40%/60% over time. They are currently at 50%/50%, with plenty more opportunity to reduce tasking hours in the store. We believe this is the biggest area of potential upside in HD's margins over time."

At the moment, Deutsche Bank has a price target of $39 on Home Depot and a Hold rating. In today's trading, Home Depot lost 0.37% and is currently standing around $36.42.