Guggenheim downgrades Home Depot, says business investment will prevent margin expansion

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Guggenheim downgrades Home Depot, says business investment will prevent margin expansion
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Guggenheim downgraded shares of Home Depot to neutral as the firm expects the home improvement retailer's business investments to weigh on margins.

"We find it difficult to see a path to EBIT margin expansion in 2020 as both a) investment spending and b) the associated D&A drag are poised to ramp," said Guggenheim analyst Steven Forbes in a note to clients on Tuesday.

"We find it difficult to see a path to EBIT margin expansion in 2020 as both a) investment spending and b) the associated D&A drag are poised to ramp," said Guggenheim analyst Steven Forbes in a note to clients on Tuesday. Shares of Home Depot ticked more than 1% lower in extended trading following the downgrade on Tuesday.

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