Buy the pullback in Home Depot, says Credit Suisse as it upgrades the stock

An employee wears an orange Home Depot Inc. apron at a store in New York.
Mark Kauzlarich | Bloomberg | Getty Images

Buy the pullback and reset in growth expectations for Home Depot, said Credit Suisse.

The firm upgraded shares of the home improvement retailer to outperform from neutral and raised its price target to $235 from $225 per share.

"We believe HD offers an attractive risk/reward now after its recent pullback, and yesterday's guidance reset, with optionality on improving external and internal drivers in FY20," said Credit Suisse research analyst Seth Sigman in a note to clients on Thursday.