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Stock impact report

Home Depot looks to bolster professional services business with SRS deal [Seeking Alpha]

Pool Corporation (POOL) 
Last pool corporation earnings: 4/23 07:00 am Check Earnings Report
US:NASDAQ Investor Relations: ir.poolcorp.com
Company Research Source: Seeking Alpha
Wells Fargo analyst Zachary Fadem said the deal marks another milestone in the home improvement retailer's journey to own the Pro ecosystem. Fadem noted that the strategic rationale is sound and the deal multiple of 16X is is fair. Looking ahead, SRS is anticipated to increase HD's cyclical recovery potential into 2025 and will boost the long-term sales algorithm. "The deal adds new specialty veriticals, is +LSD% annualized accretive and adds key capabilities (trade credit, sales, systems, etc.) that would've otherwise taken years to build internally. The asset leans needs-based w/ lower cyclicality, and w/ SRS leadership (CEO Dan Tinker & team) staying on, we see a new platform for both organic/inorganic LT growth." SRS's 760 branches spread across 47 state sell a mix of roofing and pool-related products through a sizable pro sales force and truck fleet. Of note, Home Depot ( HD ) expects SRS to be accretive to cash EPS in the first year. Looking ahead, Wells Fargo does not expe Show less Read more
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