NEW YORK (TheStreet) -- HD Supply Holdings' (HDS) - Get Report price target was boosted to $40 from $36 at Keybanc Capital Markets on Tuesday morning. The firm maintained its "overweight" rating on the stock.

The Atlanta-based company is an industrial distributor in North America.

"We have revisited our investment thesis and remain constructive given accelerating free cash generation, a favorable facilities maintenance segment outlook (+60% of EBIT) and an enhanced margin/return profile," the firm wrote in a note to investors.

Combined with the company's leading market positions and related economic moat, Keybanc anticipates ongoing outsized earnings per share growth and believe additional multiple expansion is warranted.

"We expect favorable near-term facilities maintenance performance as recent growth investments pay off into the spring/ summer selling seasons via more effective inventory placement and related cost absorption," the firm added.

Shares of HD Supply closed higher by 0.76% to $34.50 on Friday.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, compelling growth in net income, good cash flow from operations and solid stock price performance.

The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: HDS

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