Shares of Home Depot Inc. (NYSE:HD) came under pressure in early trading on Wednesday, after the company reported its second-quarter results on Tuesday.
Here are some key analyst takeaways.
- Goldman Sachs analyst Kate McShane maintained a Buy rating, while raising the price target from $400 to $444.
- Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating and price target of $455.
Check out other analyst stock ratings.
Goldman Sachs: Home Depot's stock rose on Tuesday even after the company reported its earnings slightly lower than expected, McShane said. The stock was supported by the company, indicating that it had entered the third quarter with stronger revenue trends and reiterated its full-year guidance.
While Home Depot's underlying business trends "seem to be improving," it could announce more acquisitions "to support the growth of the complex pro business," the analyst wrote. The company is unlikely to raise prices due to the impact of tariffs, McShane stated.
Telsey Advisory Group: Home Depot reported comps of 1.0% and adjusted earnings of $3.68 per share, slightly missing consensus of 1.2% and $4.72 per share, respectively. Feldman stated that the company gained market share and witnessed meaningful improvement in underlying demand.
The company has the opportunity to serve "complex" Pro customers, which represents an addressable market of around $250 billion. There is likely to be "some recovery in the home improvement market as 2025 progresses, although gains may remain dampened given elevated interest rates and tariffs," Feldman added.
Price Action: Shares of Home Depot had declined by 0.75% to $403.92 at the time of publication on Wednesday.
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