NEW YORK (TheStreet) -- Shares of Home Depot (HD) are dropping 0.38% to $111.91 in Wednesday's early morning trading after Cantor Fitzgerald lowered its 2015 EPS estimate to $5.19 per share from $5.28, and decreased the price target to $106 from $108.
The analyst firm's "hold" rating remains unchanged, as the company's beat-and-raise release benefits from a favorable tax settlement, analysts said.
The price target drop was due to analysts inputting their reduced estimates into their discounted free cash flow model.
Similarly, they reduced the 2015 EPS estimate as a result of their lower sales forecast and a slightly higher share count versus their prior model.
The Atlanta-based company is a home improvement retailer that sells a variety of materials ranging from lawn and garden products to kitchen and bath products.
TheStreet Ratings team rates HOME DEPOT INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HOME DEPOT INC (HD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."