Stifel Raises Home Depot Price Target to $340 Amid Relative Strength

Stifel has raised its price target on Home Depot Inc.'s shares to $340 from $320, while maintaining a Hold rating. The firm made this update ahead of Home Depot's second-quarter fiscal 2026 earnings report scheduled for August 18. Stifel believes the valuation gap between Home Depot and Lowe's reflects the former's relative strength in evolving its platform to capture greater share of U.S. residential investment.

According to Stifel, Home Depot shares currently trade at 13.4 times enterprise value to fiscal 2027 estimated EBITDA compared to Lowe's at 9.8 times. This valuation gap is seen as a reflection of Home Depot's lead in adapting its platform for growth. The firm also noted that a constructive approach to Home Depot shares requires multiple expansion towards top-tier specialty distribution peers.

Other notable developments include Home Depot CEO Ted Decker taking a temporary medical leave of absence, with two executives appointed to manage operations during his absence. Investors are anticipating the earnings report, which could potentially move the stock by 4.2%, according to options data.