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Investing.com - Goldman Sachs raised its price target on Home Depot (NYSE:HD) stock to $444.00 from $400.00 while maintaining a Buy rating, following the retailer’s recent earnings report. According to InvestingPro data, the company, currently valued at $404 billion, is trading above its Fair Value with a P/E ratio of 27.5x.
Home Depot shares traded up 3.2% against the S&P 500’s 0.6% decline after reporting results that included a slight earnings per share miss but indicated stronger top-line trends at the start of the third quarter.
The company reiterated its fiscal year 2025 guidance, with Goldman Sachs noting three key takeaways: improving underlying business trends, consistent capital allocation priorities with potential for more acquisitions supporting the complex pro business, and no expectations for broad price increases resulting from tariffs. InvestingPro subscribers can access 10+ additional exclusive insights about Home Depot’s financial health, which is rated as GOOD by our proprietary scoring system.
Goldman Sachs maintained its Buy rating despite acknowledging a challenging housing macro backdrop, expressing confidence that Home Depot is positioned to accelerate growth when market conditions improve.
The investment bank believes Home Depot is well-positioned to gain market share through its ongoing investments and recently closed acquisitions, factors that contributed to the 11% increase in the price target.
In other recent news, Home Depot reported its Q2 2025 earnings, showing a slight miss in earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $4.68, just below the expected $4.72, and revenue of $45.3 billion, slightly under the forecasted $45.44 billion. Despite these minor shortfalls, analysts continue to see potential for Home Depot’s growth. Evercore ISI raised its price target to $450, citing the company’s investment in professional services and technology. DA Davidson increased its price target to $475, noting improving demand trends and market share gains. Truist Securities also raised its target to $454, highlighting broad sales growth across categories. Mizuho (NYSE:MFG) raised its target to $450, observing clear demand improvement across the core business. These developments indicate continued confidence in Home Depot’s strategic initiatives and market position.
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