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TD Cowen reiterated its Buy rating and $470.00 price target on Home Depot (NYSE:HD) Wednesday, citing strengthening trends and effective tariff mitigation strategies. The retail giant, currently trading at $358.91 with a market capitalization of $358 billion, maintains a strong financial health score according to InvestingPro analysis. The firm noted that Home Depot exited the first quarter with momentum, reporting solid April comparable sales that continued into early second quarter.
The retailer is experiencing resilient homeowner spending despite weaker large discretionary projects, which have remained stable as the company awaits macroeconomic improvements. According to TD Cowen, Home Depot’s management expressed confidence in its tariff mitigation approaches, which should allow the company to maintain steady pricing and flat gross margins, with positive results excluding the Sears Repair Services (SRS) acquisition. With a P/E ratio of 24.32 and strong analyst consensus, InvestingPro data suggests the stock is currently trading near its Fair Value. Discover 8 more exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
The research firm highlighted Home Depot’s growing market share in the professional contractor segment, which it expects will accelerate in late fiscal year 2025 and into fiscal year 2026. This growth is supported by improvements in order management, credit management, and expansion of the company’s outside sales force. The company’s strong market position is reflected in its impressive $162.95 billion trailing twelve-month revenue and 15 consecutive years of dividend increases.
TD Cowen also pointed to management’s optimism regarding benefits from the SRS acquisition, noting potential opportunities for additional cross-selling between the businesses. The firm identified this as a key factor in Home Depot’s competitive positioning within the fragmented home improvement industry.
In the do-it-yourself segment, Home Depot is gaining market share through improved delivery execution and increased customer awareness, according to the research note. These improvements, combined with the company’s supply chain differentiation, are expected to drive continued market share growth across both professional and DIY customer segments.
In other recent news, The Home Depot has announced a quarterly cash dividend of $2.30 per share, marking its 153rd consecutive quarter of dividend payouts. This announcement underscores the company’s commitment to returning value to its shareholders. Furthermore, Guggenheim has maintained a Buy rating for Home Depot, with a price target of $450, following the company’s first-quarter performance, which aligned with projections despite some unexpected factors. Similarly, TD Cowen reaffirmed its Buy rating with a $470 price target, highlighting Home Depot’s effective management of tariff impacts without resorting to widespread price hikes.
In contrast, Baird adjusted its price target for Home Depot from $430 to $425, while maintaining an Outperform rating, noting the company’s strong first-quarter performance and steady demand for small projects. Additionally, Home Depot has appointed Angie Brown as the new Executive Vice President and Chief Information Officer, succeeding Fahim Siddiqui. Brown, with 27 years at the company, is credited with introducing significant digital advancements. These recent developments reflect Home Depot’s strategic initiatives and stable financial practices amidst ongoing economic uncertainties.
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