HD - Home Depot picks growth over buybacks with HDS Supply deal

Bank of America is positive on Home Depot ([[HD]] +0.5%) after the retailer strengthened its position in the underpenetrated MRO (maintenance, repair, & operations) market with the acquisition of HD Supply ([[HDS]] +24.2%). "HDS's customer base will expand Home Depot’s reach, which has historically been single-family homes. HD estimates that the MRO market is approximately $55bn, a relatively small portion of the broader $680bn home improvement market, but one in which HD has had limited participation in the last decade. HD did acquire Interline Brands for $1.6bn in 2015 to grow its presence in this market, which will be further accelerated with the re-integration of HD Supply." BofA expects some synergies to be achieved from the business combination, but notes the deal does reduce the likelihood or extent of Home Depot share buybacks. "However, HD’s focus on investing in future growth is consistent with the company’s culture and we still

For further details see:

Home Depot picks growth over buybacks with HDS Supply deal