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On Wednesday, Guggenheim reaffirmed its Buy rating and $450.00 price target for Home Depot stock (NYSE:HD), currently trading at $372. According to InvestingPro data, analyst targets range from $297 to $484, with a strong consensus recommendation of 1.82 (Buy). The endorsement follows Home Depot’s first-quarter 2025 performance, which Guggenheim found to align with its projections, aside from some unanticipated factors. Analysts noted that the results were influenced by a calendar shift, which provided an approximate 220 basis point boost, and foreign exchange headwinds, which had a roughly 70 basis point impact.
The company’s quarterly success was attributed to a significant uptick in comparable store sales as the quarter progressed. With revenue of $163 billion in the last twelve months and a healthy gross profit margin of 33.3%, Home Depot saw comp sales increase to 1.8% in April, adjusted to 2.5% when excluding the Easter shift headwind. This was a climb from 1.3% in March, or 0.5% with the Easter benefit considered, and a turnaround from a 3.3% decline in February. This growth coincided with the onset of spring.
Guggenheim’s positive outlook is further bolstered by Home Depot’s strategic initiatives. As a prominent player in the Specialty Retail industry with a 39-year track record of consistent dividend payments, these include enhancing the PRO ecosystem to better cater to professional customers, with a goal to implement bill-upon-delivery capabilities within their order management system by year-end. InvestingPro analysis shows the company maintains a strong financial health score of 2.61 (GOOD). Additionally, the integration and mid-single-digit growth of SRS distribution, investments in interconnected experiences like AI tools, improvements in fulfillment options and delivery experiences, and merchandising advancements were highlighted.
Among these merchandising improvements is an expanded partnership with Behr (MAS, NC, $65.90) to exclusively offer KILZ branded primer products in the United States. Guggenheim analysts believe these moves position Home Depot to continue expanding its lead over industry competitors. For deeper insights into Home Depot’s valuation and growth potential, including 8 additional ProTips and comprehensive financial analysis, visit InvestingPro, where you’ll find detailed research reports and expert analysis.
In other recent news, Home Depot’s first-quarter performance has drawn varied reactions from analysts, with earnings and revenue results aligning with expectations. TD Cowen has reiterated a Buy rating with a $470 price target, highlighting the company’s effective tariff management and solid start to the year as indicators for a strong second quarter. Baird, while maintaining an Outperform rating, has slightly reduced its price target to $425, pointing to Home Depot’s steady U.S. sales growth and pricing strategy. RBC Capital Markets continues to hold a Sector Perform rating with a $399 price target, noting a slight improvement in future sales growth projections but expressing caution over pricing strategies.
Bernstein has adjusted its price target upward to $398, maintaining a Market Perform rating, despite Home Depot’s first-quarter sales being slightly down due to weather and large-scale project slumps. Meanwhile, Mizuho (NYSE:MFG) Securities has reduced its price target to $435 but kept an Outperform rating, citing positive surprises in U.S. sales and the company’s sourcing flexibility. Analysts have noted that Home Depot’s management remains confident, having reaffirmed their fiscal year guidance and strategies to mitigate tariff impacts.
The company’s ability to navigate economic uncertainties, including foreign exchange and tariffs, has been a focal point in these analyses. Home Depot is also expected to benefit from its strategic positioning and potential recovery in sector demand, as noted by various firms. Despite these positive indicators, challenges such as high mortgage rates and limited consumer spending power remain considerations for future growth.
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