Techtronic Industries (00669) surged over 4% during early trading. At the time of writing, the stock was up 3.99% to HK$87.35, with a trading volume of HK$232 million.
Recently, Home Depot, a leading U.S. home improvement retailer, reported its third-quarter results. Citigroup noted that Techtronic's largest customer, Home Depot, reflects trends in the U.S. consumer market. Techtronic's business is more focused on the professional segment, accounting for about 70% of its total sales, prompting the bank to maintain its full-year forecast for the company.
Citigroup highlighted that Techtronic could see accelerated growth starting next year. If the stock price declines due to Home Depot's weaker-than-expected performance, it may present a buying opportunity.
The bank also pointed out that Home Depot's Q3 revenue and net profit fell short of expectations, leading to a 3% downward revision in its full-year earnings per share guidance to $14.48, below prior projections and market estimates. However, excluding storm and weather-related impacts, its core business performance remained stable.
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