Street View: Home Depot's outlook comes together like flat-pack furniture

** Morgan Stanley ("Overweight," PT: $400) says category breadth, retail sales, and other data points suggest home improvement demand is starting to improve, and while a clear inflection point has yet to emerge, the upside potential for HD remains intact

** Telsey Advisory Group ("Outperform," PT: $410) says HD's FY guidance appears achievable and that its assumption of a stable home improvement market remains reasonable for the rest of the year

** Jefferies ("Buy," PT: $398) says easier comparisons and more typical storm activity are likely to support results going forward

** Morningstar (fair value: $325) says ongoing initiatives could help expand operating margins back to pre-pandemic levels over the long term, despite inflationary pressures, economic uncertainty, and a growing shift toward distribution sales

** Home Depot HD.N beat Wall Street estimates for Q2 sales and profit on Tuesday, as steady demand for repair and maintenance projects helped offset weaker spending on larger home renovation projects, including kitchen remodels

** Median PT of 38 brokerages covering the stock is $378 - data compiled by LSEG