Evercore ISI raises Home Depot stock price target to $450 on growth potential

Published 20/08/2025, 11:20
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Investing.com - Evercore ISI has raised its price target on Home Depot (NYSE:HD) stock to $450.00 from $415.00 while maintaining an Outperform rating. The stock, currently trading at $407.20, has shown strong momentum with a 13.5% return over the past year. According to InvestingPro data, analyst targets for the stock range from $308 to $475, with 8 analysts recently revising their earnings estimates upward.

The research firm described Home Depot as a "benchmark retailer" that continues to invest in professional services, technology, multichannel capabilities, and physical stores despite current low demand conditions. The company’s strong financial position is reflected in its GOOD overall health score from InvestingPro, with a robust EBITDA of $25.6 billion and an impressive return on assets of 14.9%.

Evercore ISI projects that the home improvement sector might lag behind the broader retail growth of 3.5-4% in 2025, with the firm forecasting approximately 1% growth for home improvement next year.

The analyst note emphasized that "positive is better than negative" regarding the growth outlook, and included Home Depot among its Top Five stock picks.

Evercore ISI views Home Depot as a "compounder" with both earnings-per-share and multiple expansion potential as sales begin to turn positive.

In other recent news, Home Depot reported its Q2 2025 earnings, which showed a slight miss in both earnings per share and revenue compared to analyst forecasts. The company posted an EPS of $4.68, falling short of the expected $4.72, and revenue of $45.3 billion, just under the projected $45.44 billion. Despite these minor misses, Home Depot continues to gain attention from analysts due to its strategic initiatives and operational updates. DA Davidson raised its price target for Home Depot to $475, maintaining a Buy rating, citing improving demand trends and market share gains. Truist Securities also increased its price target to $454, highlighting the company’s broadest sales growth across categories and geographies in over two years. Meanwhile, Mizuho (NYSE:MFG) adjusted its price target to $450, noting clear demand improvements across Home Depot’s core business, with 12 out of 16 product categories showing positive performance. These recent developments suggest a positive outlook from analysts despite the slight earnings miss.

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