Truist Securities raises Home Depot stock price target on improving sales trends

Published 19/08/2025, 19:46
© Reuters.

Investing.com - Truist Securities raised its price target on Home Depot (NYSE:HD) to $454.00 from $433.00 on Tuesday, while maintaining a Buy rating on the home improvement retailer’s stock. Currently trading at $406.07, the stock sits between analysts’ targets ranging from $308 to $475. According to InvestingPro analysis, Home Depot appears to be trading above its Fair Value.

The price target increase follows Home Depot’s report of its broadest sales growth across categories and geographies in over two years, marking the company’s third consecutive quarter of positive comparable sales in the United States, with accelerating trends as weather normalized. The company’s robust performance is reflected in its $162.95 billion revenue over the last twelve months, with a 7.33% growth rate. InvestingPro data reveals that Home Depot has maintained dividend payments for 39 consecutive years, demonstrating remarkable financial stability. Subscribers can access 8 more exclusive ProTips about HD’s performance and outlook.

While large financed project spending remains soft, the retailer saw improvement in big-ticket sales over $1,000, which accelerated to 2.6% growth, according to Truist’s analysis.

Home Depot’s guidance for the second half of the year assumes current sales run-rates will persist, without requiring further acceleration despite the strong second-quarter exit rate.

The company is experiencing a double-digit lift in sales to professional customers who use its new trade credit and utilize same-day or next-day delivery capabilities, Truist noted in its analysis.

In other recent news, Home Depot reported its Q2 2025 earnings, showing a slight miss in both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $4.68, falling short of the expected $4.72, and generated revenue of $45.3 billion, just under the projected $45.44 billion. Despite these minor shortfalls, the company’s stock experienced a positive reaction, driven by strong operational updates and strategic initiatives. Additionally, Mizuho (NYSE:MFG) has raised its price target for Home Depot from $435 to $450, maintaining an Outperform rating. The firm highlighted improved demand across Home Depot’s core business, with 12 out of 16 product categories showing positive performance. However, paint, flooring, lumber, and lighting, which account for approximately 23% of revenues, remained negative. This percentage is the lowest since the second quarter of 2022, indicating potential areas for future growth. These recent developments reflect the company’s ongoing efforts to strengthen its market position.

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