According Morgan Stanley,
$360 PT represents ~19.5x our 2024e EPS of $18.20, or ~14x our 2024e EBITDA of ~$27.8b. Home improvement sees demand moderation in '23 and growth in '24. In '22/'23/'24 we forecast comps of 3.3%/0.5%/3.5%, GM -10 bps/flat/flat, and +2.7%/+0.5%/+3% SG&A per sq ft growth. This drives ~15 bps of cumulative EBIT margin expansion in 2022-2024, with +5%/flattish/+4% EBIT growth.
Risks to Upside
Housing market accelerates through and beyond COVID-19 disruption
Initiatives gain momentum and drive top line acceleration in 2022/2023
Risks to Downside
A slowdown in the Home Improvement market
More than expected interest rate hikes
Departure of key leadership
$360 PT represents ~19.5x our 2024e EPS of $18.20, or ~14x our 2024e EBITDA of ~$27.8b. Home improvement sees demand moderation in '23 and growth in '24. In '22/'23/'24 we forecast comps of 3.3%/0.5%/3.5%, GM -10 bps/flat/flat, and +2.7%/+0.5%/+3% SG&A per sq ft growth. This drives ~15 bps of cumulative EBIT margin expansion in 2022-2024, with +5%/flattish/+4% EBIT growth.
Risks to Upside
Housing market accelerates through and beyond COVID-19 disruption
Initiatives gain momentum and drive top line acceleration in 2022/2023
Risks to Downside
A slowdown in the Home Improvement market
More than expected interest rate hikes
Departure of key leadership
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.