UPDATE: Raymond James Reiterates On The Home Depot Following F2Q14 Earnings Release

In a report published Wednesday, Raymond James analyst Budd Bugatch reiterated an Outperform rating on The Home Depot (NYSE: HD), and raised the price target from $85.50 to $91.00.

In the report, Raymond James noted, “We reaffirm our Outperform rating on HD and increase our target price to $91 following the company's F2Q14 earnings release and management conference call. Headline results (sales and adjusted EPS) beat expectations driven by a rebound in the seasonal business and strong results in the maintenance and repair, professional, and service segments. Management delivered a higher than forecast gross margin while also posting a lower than modeled SG&A expense, thereby contributing to higher than estimated operating earnings.

"The Home Depot continues to make progress integrating physical and digital retail and this quarter roughly one third of online sales originated in a store with the assistance of an associate. The company is now rolling out its next generation First Phone, a handheld device that allows associates to assist customers with questions, place online orders, and even complete the checkout process in the aisle. Management continues to invest in technology to improve productivity and enhance the customer experience while continuing to return capital to shareholders (the company returned roughly $2.8 billion to shareholders during the quarter through dividends and share repurchases). We remain Outperform rated on the stock, though valuation is reaching the upper end of what we judge as fair value.”

The Home Depot closed on Tuesday at $88.23.