Jefferies Boosts Home Depot Price Target Amid Signs of Easing Housing Downturn

Analysts at Jefferies have raised their price target for Home Depot (HD) stock to $398 from $360, citing stronger-than-expected comparable sales and resilient margins in the company's second-quarter performance. The revised target implies an 18% upside to HD's last closing price.

The analysts pointed out that despite a persistent housing market downturn, Home Depot has managed to attract customers and take share from competitors, even as consumers remain cautious about larger discretionary renovation projects. They expect easier comparisons in coming quarters to support growth and a return to more normal storm activity to boost demand for repair and maintenance products.

DA Davidson also maintained its Buy rating and $377 price target for Home Depot, highlighting comparable sales growth of 1.7% overall and 1.3% in the U.S., which they described as the strongest comparable-sales performance the company has posted in several years.