Home Depot stock price target raised to $401 from $399 at RBC Capital

Published 20/08/2025, 15:22
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Investing.com - RBC Capital has raised its price target on Home Depot (NYSE:HD) to $401.00 from $399.00 while maintaining a Sector Perform rating on the stock. With the current stock price at $406.83, InvestingPro data shows the stock is trading slightly above its Fair Value, while delivering a solid 13.55% return over the past year.

The price target adjustment comes after Home Depot’s second-quarter results showed "modest underlying improvement" in demand, according to RBC Capital. The firm noted that the retailer’s strong exit rate would likely keep shares favorable as long as the current rate outlook remains unchanged. Eight analysts have recently revised their earnings estimates upward, according to InvestingPro data, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ top stocks.

RBC Capital has slightly revised its estimates for Home Depot, now modeling comparable sales growth of 1.0% for 2025 and 3.2% for 2026, down from previous estimates of 1.2% and 3.6%, respectively.

The firm’s adjusted earnings per share forecasts have been tweaked to $14.98 for 2025 and $16.03 for 2026, compared to prior estimates of $14.97 and $15.94. The new price target is based on approximately 25 times RBC’s revised 2026 adjusted EPS estimate.

RBC Capital believes Home Depot’s earnings per share growth appears positioned to accelerate, though timing and magnitude remain the biggest variables affecting this outlook.

In other recent news, Home Depot’s second-quarter earnings have caught the attention of several analyst firms, leading to a series of price target adjustments. UBS has reiterated its Buy rating on Home Depot, citing market share gains and setting a price target of $475. This comes as the company reported a 1.4% increase in U.S. comparable sales, marking its strongest performance in over two years, despite a slight miss in earnings expectations. Meanwhile, KeyBanc maintained its Sector Weight rating, noting improving trends and broad-based category strength.

Baird raised its price target to $450, highlighting positive consumer engagement trends across product categories. Similarly, Goldman Sachs increased its price target to $444, maintaining a Buy rating and pointing to stronger top-line trends at the start of the third quarter. Evercore ISI also raised its price target to $450, emphasizing Home Depot’s continued investment in professional services and technology. These developments reflect a consensus among analysts about Home Depot’s potential for growth amid current market conditions.

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