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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Home Depot (NYSE:HD) to $450.00 from $435.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, analyst targets for the retail giant, which commands a market cap of $403 billion, range from $308 to $475, with the stock currently trading above its Fair Value estimate.
The firm cited clear demand improvement across Home Depot’s core business, noting that 12 of 16 product categories showed positive performance. Only four categories—paint, flooring, lumber, and lighting—remained negative, representing approximately 23% of revenues, which is the lowest percentage since the second quarter of 2022. This improvement comes as the company maintains strong financial health, with InvestingPro analysis showing a robust 33.3% gross profit margin and consistent dividend payments for 39 consecutive years.
Mizuho highlighted several positive operational developments, including the implementation of trade credit for professional customers, which is delivering a double-digit percentage lift for pros. This feature is expected to provide further benefits as it rolls out for in-store use. The company’s operational efficiency is reflected in its strong financial metrics, with revenue reaching $163 billion in the last twelve months and maintaining healthy profit margins.
The firm also noted that faster delivery times and "speed badging" are enabling a double-digit percentage increase for online orders as conversion rates improve. Early third-quarter trends are reportedly continuing the same broad-based momentum observed in the second quarter.
Home Depot shares traded higher following the news, with Mizuho describing the demand improvement signals as "far overpowering a very slight OpEx overage and $0.04 EPS" in its analysis.
In other recent news, Home Depot reported its Q2 2025 earnings, revealing a slight miss in both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $4.68, which was slightly below the expected $4.72. Revenue came in at $45.3 billion, just under the forecasted $45.44 billion. Despite these minor shortfalls, the company’s stock saw a rise in pre-market trading, buoyed by strong operational updates and strategic initiatives. These developments reflect Home Depot’s ongoing efforts to enhance its operational efficiency and strategic positioning in the market. Analysts from various firms continue to monitor these updates closely, as they assess the company’s performance and future prospects. Investors are advised to consider these recent developments when evaluating Home Depot’s financial health and market strategy.
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