HD solidifies upside path after Q2

Analysts lift price targets on Home Depot after a Q2 report that came in modestly above expectations on some lines and reaffirmed the full year outlook.

Wall Street Sees More Upside for Home Depot After Q2 Earnings

Home Depot posted Q2 net sales of 45.3 billion dollars, up 4.9 percent from a year ago, with same store sales rising 1 percent. The company kept its full year outlook intact and projected a 2 percent drop in adjusted earnings per share, while the stock rose more than 3 percent following the release.

Wall Street analysts responded with more bullish targets. Morgan Stanley, D A Davidson and Jefferies each raised their price targets on HD stock as they cited resilient demand in both Pro and DIY channels, strength in e commerce and a rebound in big ticket categories. The street consensus remains a Moderate Buy, with an average target in the low to mid 400s implying upside of roughly eight percent.

The quarter underscored how Home Depot benefits from a mixed but improving housing backdrop. Analysts point to steady U S sales momentum and the companys ability to convert traffic into cross category spending, aided by ecommerce and a focus on professional customers. Yet the upside depends on macro moves such as mortgage rates and consumer confidence holding up through a possibly volatile autumn. If rates ease as some expect, HD could see sustained demand. If not, the recent price targets may prove optimistic. The tone across banks is constructive but balanced, signaling room for upside while acknowledging macro risk.

Highlights

The next few months will test how much the housing cycle can support continued gains in home improvement