After Guggenheim and RBC Capital gave Home Depot (NYSE: HD) a Buy rating last month, the company received another Buy, this time from Wells Fargo. Analyst Zachary Fadem maintained a Buy rating on Home Depot today and set a price target of $235. The company’s shares closed last Monday at $217.54, close to its 52-week high of $219.30.
Fadem said:
“We believe tailwinds from these initiatives, along with moderating lumber deflation, a still healthy consumer (wages +3% y/y, high confidence) and potentially improving housing outlook (lower rates, rising turnover) bode well for 2H comp acceleration. And while compares ease -320bps in Q3, a freshly set ~5% bar (-100bps 2-yr stack) appears achievable, with some tariff-driven conservatism for good measure. All in, we remain constructive on the 2H setup, with accelerating 2H comps, relatively manageable tariff exposure, and potential upside from housing improvement and margin flexibility.”
According to TipRanks.com, Fadem is a 5-star analyst with an average return of 12.5% and a 69.3% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Home Depot with a $216.18 average price target, which is a 1.3% upside from current levels. In a report issued on August 12, Stifel Nicolaus also maintained a Buy rating on the stock with a $230 price target.
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Based on Home Depot’s latest earnings release for the quarter ending April 30, the company reported a quarterly revenue of $26.38 billion and net profit of $2.51 billion. In comparison, last year the company earned revenue of $30.46 billion and had a net profit of $3.51 billion.
Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HD in relation to earlier this year.
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