Bernstein Raises Home Depot Price Target Amid Gradual Market Recovery

Analysts at Bernstein SocGen Group have increased their price target for Home Depot Inc. () shares to $354, while maintaining a Market Perform rating on the stock.

The firm's cautionary outlook on the home improvement market expects a gradual path to recovery, but notes that elevated mortgage rates and inflation continue to present affordability challenges for homeowners considering large discretionary projects.

Despite near-term headwinds, Home Depot maintains a significant market cap of $336.5 billion and trades at a P/E ratio of 24.06, offering a dividend yield of 2.76% and a record of raising its dividend for 16 consecutive years.

Bernstein noted that low expectations for a market rebound could limit downside risk for the stock, and suggested that Home Depot shares could recover if macroeconomic conditions improve.