UBS and Goldman Sachs Back Home Depot Stock Amid Mid-Single Digit Growth Projections
Home Depot's stock price has seen some support from analysts as UBS and Goldman Sachs reiterated their Buy ratings in mid-September. Both banks maintained their price targets, with UBS setting a target of $420.00 and Goldman Sachs at $377.00.
The consensus among analysts is for the company to deliver mid-single-digit growth and guidance that has been reaffirmed by management. In the latest quarter, revenue rose 5.7% and adjusted EPS increased 5.1%, driven by demand for smaller projects, contributions from distributors SRS and GMS, and $685 million in tariff refunds.
While analysts project upside based on Home Depot's operational performance and cash returns to shareholders, the company remains sensitive to macro headwinds. The housing cycle and interest rates are key factors that could impact the stock price.