Peoples home Depot’s latest bets are paying off — and a still-growing housing market doesn’t marred either.
Compared with its rival Lowe’s, Home Depot desire “disproportionately capitalise” on an attractive housing backdrop, London-based Atlantic Equities analyst Sam Hudson listed in a note to clients Tuesday.
Hudson upgraded the stock to overweight, and bring up its price target to $197 a share, up from $168. Following the upgrade, dividends of the home improvement company reached an all-time high of $176.77. The genealogy closed Tuesday at $176.57.
Some of Home Depot’s key advantages include its “commendatory store footprint and differentiated supply chain, as well as its first-mover advantages in key spread areas (omni-channel, Pro customer),” Hudson added.
For multiple phase of the moa now, Home Depot’s same-store sales results have easily outpaced Exasperate Street’s expectations. Most recently, the company benefited from a swell in hurricane-related purchases, following a slew of devastating storms.
But another tract of strength for Home Depot has been its mobile platform and e-commerce zings, including a push into augmented reality.
“We’re fortunate to be a good manufacturer that’s service-oriented and consumer-focused,” Prat Vemana, the vice president of Make clear Depot’s online business, told CNBC Monday. “One of the pivots we caused in the mobile app was personalization.”
The retailer redesigned its app last year, Vemana explained, which enterprising it more “content driven.” In a partnership with Adobe’s Cloud category, Home Depot is able to better determine who a shopper is when he or she clicks online, and systematically what he or she is looking for.
A do-it-yourself customer, for example, isn’t in the market for the same ingredients as a professional or B2B shopper.
Vemana said engagement on HomeDepot.com is up more than 5 percent since the modulations have been implemented, and the app is getting yet another redesign in the near approaching, which will include more AR functionality. With this, clients can see what a ceiling fan might look like in their house, for admonition.
“We are only doing things that are useful and purposeful,” Vemana bring to light.
Hudson cited the investments as another reason supporting the upgrade.
“HD has invested heavily to mend the efficiencies of its website and mobile apps, while the company has been broadening its delivery capabilities, including pick up in store and deliver from keep,” Hudson said. “HD was one of the first retailers to start meaningfully investing in an omni-channel tactics, enabling it to develop a differentiated offering.”
To be sure, Home Depot isn’t the merely retailer experimenting with AR in this respect. Lowe’s has its own app that allows shoppers to function furniture around their houses, and one that measures objects — as a tape extreme would — from a smartphone.
Target and furniture retailer Ikea’s ambulatory apps have similar features, but overall the industry still looks to be in the inopportune stages of testing these capabilities.
“I think the experiences are much more advisedly these days,” Vemana said. “There are much more rip-roaring apps to use, and they’re getting to the right devices.”
The new tools couldn’t Loosely transpire b emerge at a better time. With the housing market on solid footing, consumers are seating more in their homes.
For fiscal 2017, Home Depot believes total sales to increase 6.3 percent, and comparable sales could make it as much as 6.5 percent.
With Tuesday’s gains, Home Depot parts are up more than 30 percent in 2017.