Truist Ups Home Depot Price Target Amid Improving Sales
Truist Securities has raised its price target for Home Depot Inc. (HD) to $373 from $369, maintaining a Buy rating on the shares. The retailer currently trades at $348.57 with a market capitalization of $346 billion and a P/E ratio of 24.06.
InvestingPro analysis suggests the stock appears overvalued relative to its Fair Value estimate. However, Truist notes that tariff refunds boosted gross margins and earnings per share by approximately $0.50 in the second quarter.
Higher fuel and input costs than previously anticipated partially offset margins, reducing EPS by about $0.22. The firm expects a similar level of higher costs to flow into the third quarter, modestly lowering second-half EPS estimates.
Sales continue to improve despite a sluggish housing environment, with revenue growth of 2.23% over the last twelve months. Home Depot has raised its dividend for 16 consecutive years and maintains a 2.76% dividend yield.