RBC Slashes Price Target for Home Depot Amid Lumber Inflation

RBC Capital has adjusted its estimates for Home Depot Inc.'s (NYSE:HD) performance, lowering its price target to $342 from $343 while maintaining a Sector Perform rating.

The firm attributed the change in part to delivered headline beats but noted that results likely would have disappointed without lumber inflation and IEEPA tariff refunds.

RBC Capital adjusted the cadence of EPS delivery, but its 2026 and 2027 estimates remain largely unchanged. The company now models comparable sales of 1.7% and 1.5% for those years, compared with prior estimates of 1.2% and 1.6%.

The price target is based on approximately 22 times RBC Capital's revised 2027 adjusted EPS estimate of $15.53.