Simeon Gutman, an analyst from Morgan Stanley, maintained the Buy rating on Home Depot (HD – Research Report). The associated price target was raised to $415.00.
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Simeon Gutman has given his Buy rating due to a combination of factors that suggest a positive outlook for Home Depot’s stock. The price target has been raised to $415, reflecting a potential upside of approximately 10% from the current valuation. This adjustment is supported by a favorable risk/reward profile, with significant potential gains in the bull case scenario.
Gutman’s analysis incorporates slight increases in earnings per share estimates for 2025 and 2026, driven by expected improvements in comparable sales and operating margins. The forecast includes a modest expansion in gross margins and leverage in selling, general, and administrative expenses. These factors, combined with a stable tax rate and a temporary pause in share buybacks, contribute to the projected earnings growth. The target valuation is slightly above the current market level, justified by Home Depot’s status as a preferred cyclical stock within the analyst’s coverage.
In another report released today, D.A. Davidson also reiterated a Buy rating on the stock with a $470.00 price target.