Home Depot Stock Ticks Higher on Strong Q2 Performance
Home Depot's (HD) stock has ticked higher overnight after Jefferies raised its price target to $398 from $360, citing stronger-than-expected comparable sales and resilient margins. The analyst, Jonathan Matuszewski, expects easier comparisons in coming quarters and a return to more normal storm activity to support growth.
Jefferies' bullish call followed Home Depot's strong second-quarter performance, with the company continuing to attract customers despite 'frozen' housing conditions. Matuszewski noted that Home Depot has managed to take share from competitors even though consumers remain cautious about larger discretionary renovation projects, which have been pressured by elevated borrowing costs.
DA Davidson also maintained its Buy rating and $377 target for Home Depot, highlighting comparable sales growth of 1.7% overall and 1.3% in the U.S., describing the results as the strongest comparable-sales performance the company has posted in several years.