Glonghui, Feb. 23 | Bank of America Securities released a report saying that Home Depot earned $2.82 per share in the fourth quarter, higher than market expectations of $2.77; same-store sales fell 3.5% year-on-year, still better than market expectations of 3.8%; operating margin fell 135 basis points to 11.9%, slightly better than market expectations of 11.8%, with gross margin falling 20 basis points year-on-year. This is reflected in early pricing actions before costs fall. Bank of America Securities lowered the Group's earnings estimate per share for the 2025/2024 calendar year from $16.16 to $15.25. It also anticipated that the company's gross margin would improve by 50 basis points year-on-year, but this was offset by pressure on operating expenses. The bank expects that the Group's continued investment in omnichannel, professional programs and new stores will continue to support growth in 2024 and beyond the market in the long term. The bank mentioned that Home Depot's strategic investment and market share expansion will help offset macroeconomic weakness. Although the macroeconomy remains volatile, there are signs of improvement from the bottom. I believe Home Depot will be in a good position to continue to expand its market share and surpass the overall market. However, rising property prices, aging housing stock, and increased millennial household composition and usage are all long-term driving factors favorable to home improvement spending. The bank reaffirmed the “buy” rating and raised the target price from $372 to $400.