Goldman Sachs Upgrades Home Depot

New York, NY, July 9, 2007—Home Depot was upgraded to buy from neutral by Goldman Sachs. The firm cited changes in management and culture and an improved business mix and capital structure.

Goldman said the upgrade is a longer-term call, as the retailer faces an ongoing impact from the sluggish housing market.  The firm said, "We expect gradual investor recognition of qualitative improvements, and anticipate that investments in service and systems, and the gradual transformation of the firm's culture, will ultimately flow to the profit and loss statement."