WP Canada

Home Depot (NYSE:HD) shares are up around 0.3% Wednesday, a day after the company held its 2023 Investor & Analyst Conference in New York City, outlining how it plans to gain pro-market share.

In comments following the event, Wolfe Research analysts told investors that the home improvement industry is going through a year of moderation.

However, HD "expects a continuation of market share gains, particularly in the complex pro project category," said analysts, who maintained an Outperform rating and $327 price target on the stock.

"The broad assortment offering and improving service levels should enable pro share gains longer term. Management's 3-4% LT growth target is expected to outpace the market's L*D growth," they added.

Meanwhile, Bernstein analysts maintained a Market Perform rating and $314 price target on HD shares.

They said HD provided little new information on FY23, offered a view for a new base case outlook for when the housing market stabilizes, and reiterated its focus on the planned purchase Pro occasion.

"HD established a Base Case outlook featuring faster-than-sector topline growth of 3-4% and MSD-HSD% EPS growth. We remain skeptical as to whether HD's new initiatives will drive margin expansion and EPS growth faster than topline growth, particularly with the emphasis on increasing pe*******on within the "complex" project market," said analysts.