Citi published a report stating that Home Depot's same-store sales growth fell by 1.3% in the third quarter, beating expectations. The company revised its full-year sales decline from 3% to 4% up to 2.5%, believing that same-store sales growth benefited from stable weather, seasonal products, and the popularity of certain outdoor items, along with demand related to tornadoes.
The bank noted that since Home Depot is the largest customer of Techtronic Ind, the latter is expected to gain momentum in operations in the third quarter. However, Techtronic’s stock price has recently been dragged down by Trump's potential increase in trade tariffs. The bank believes this presents a good buying opportunity since Techtronic has historically outperformed macroeconomic and industry performance. The bank's target price for Techtronic is HKD 140, with a rating of 'buy', and Techtronic is one of its preferred choices in the mainland industrial sector.
