RBC Downgrades Home Depot Price Target to $342 Amid Revised Estimates
RBC Capital Markets has revised its estimates for Home Depot Inc., downgrading its price target to $342 from $343 while maintaining a Sector Perform rating.
The firm attributed this change to the company's recent fiscal second-quarter 2026 results, which exceeded Wall Street expectations. Home Depot reported adjusted earnings of $4.92 per share, surpassing the forecast of $4.73, and generated revenue of $47.86 billion.
RBC Capital Markets also adjusted its comparable sales estimate for the third quarter to 2.4% from 1.7%, while lowering its adjusted EPS estimate to $3.78 from $3.97. The firm currently assumes fuel costs will normalize in 2027, and it has revised its estimates for 2026 and 2027 accordingly.
For the two years, RBC Capital Markets now models comparable sales of 1.7% and 1.5%, compared with prior estimates of 1.2% and 1.6%. The firm projects adjusted EPS of $14.95 and $15.53 for those years, compared with prior estimates of $14.92 and $15.59.