Home Depot stock steady as Truist reiterates buy rating on GMS bid

Published 23/06/2025, 15:14
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Investing.com - Truist Securities maintained its buy rating and $417.00 price target on Home Depot (NYSE:HD), currently valued at $350 billion in market cap, following the retailer's approximately $5 billion bid to acquire specialty building products distributor GMS. According to InvestingPro data, Home Depot is currently trading near its 52-week low, with a solid financial health score of "GOOD."

The potential acquisition represents Home Depot's continued push to expand its presence in the professional contractor market, coming after the company's recent $18 billion acquisition of SRS Distribution.

Truist noted that while the timing might not be ideal as Home Depot had intended to focus on reducing debt following the SRS purchase, the company needed to act quickly once GMS became available as an acquisition target.

The GMS acquisition would provide Home Depot with additional distribution capabilities and accelerate its expansion into the complex professional contractor segment, according to Truist's analysis.

Truist's maintained rating reflects its view that housing demand in the United States is poised to accelerate, with Home Depot strategically positioning itself to benefit from growth in this market segment.

In other recent news, Home Depot reported significant developments that are drawing attention from investors. The company announced a quarterly cash dividend of $2.30 per share, marking its 153rd consecutive quarter of dividend payments, a key indicator of its financial practices. Analyst firm TD Cowen maintained its Buy rating and a $470 price target for Home Depot, highlighting the company's successful tariff mitigation strategies and steady pricing, which have contributed to stable gross margins. Guggenheim also reiterated a Buy rating with a $450 price target, noting Home Depot's solid first-quarter performance and strategic initiatives aimed at enhancing its professional customer ecosystem and merchandising capabilities.

Additionally, Home Depot appointed Angie Brown as the new Executive Vice President and Chief Information Officer, who will lead the company's technology strategy. This leadership change follows Brown's previous role as Senior Vice President of Information Technology, where she made significant digital advancements. Home Depot's management expressed optimism about the benefits of the Sears Repair Services acquisition, which is expected to enhance cross-selling opportunities. The company is also gaining market share in both professional and do-it-yourself segments, driven by improved delivery execution and customer awareness. These developments reflect Home Depot's ongoing efforts to strengthen its competitive position in the home improvement industry.

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