Home Depot Downgraded by Piper Jaffray

Minneapolis, MN, June 21, 2007—Home Depot has been downgraded to market perform from outperform by Piper Jaffray.  The firm cited valuation following the retailer's deal to sell its contractor-supplies business.

Piper Jaffray said, "With Home Depot Supply out of the picture, the focus turns to the company's ability to grow in the challenging -- and increasingly saturated -- DIY retail market. We have long thought that the HD Supply segment provided the combined company with a stronger growth profile as store growth in the retail market has slowed to a mid-single-digit rate."