Home Depot Earnings Preview: Strong Expectations Ahead of Q2 Report
Home Depot's (HD) stock price ticked higher overnight ahead of its second-quarter earnings report, set to be released before Tuesday's market open. Analysts expect a strong showing from the retailer, with revenue and earnings estimates pointing towards growth.
Stifel raised Home Depot's price target to $340 from $320 while maintaining a 'Hold' recommendation. The firm highlighted the company's relative strength in the home improvement market, but cautioned that its premium valuation requires a meaningful housing and home-improvement recovery to support further upside.
RBC Capital also increased its price target on Home Depot to $343 from $340 while retaining a 'Sector Perform' rating. The firm noted that Home Depot's investments in its distribution network and valuable store footprint could help the retailer capture additional market share, but warned that investors may already be pricing in a relatively quick rebound in housing activity.