Update shared on27 Aug 2025
Fair value Increased 2.29%Analysts have raised Home Depot’s price target as Q2 results showed strengthening demand, robust e-commerce growth, and ongoing Pro initiatives, with optimism tied to potential rate cuts, now valuing shares at $437.56.
Analyst Commentary
- Q2 results indicated improved underlying demand, with momentum carrying into early Q3 and broad-based category strength, including the strongest e-commerce growth since mid-2022.
- Comps improved throughout Q2, highlighted by the best monthly comp in July, three straight quarters of positive U.S. comps, and accelerating big ticket sales and DIY activity.
- Bullish analysts cite optimism for Home Depot’s outlook amid expectations of Fed interest rate cuts and lower mortgage rates, which could further catalyze home improvement demand.
- Wells Fargo and others note that recent resonating initiatives and the GMS acquisition enhance Home Depot’s platform capabilities and competitive positioning, especially within the Pro segment.
- Bearish analysts remain cautious, seeing no imminent broad rebound in home improvement demand and flagging uncertainties tied to expense timing, operating profit, and the timing/magnitude of EPS growth acceleration.
What's in the News
- President Donald Trump has purchased hundreds of bonds, including corporate debt from Home Depot, during his current term in office (Bloomberg).
- Home Depot submitted a takeover bid for GMS Inc., sparking a potential bidding war with QXO (Wall Street Journal).
- The price Home Depot proposed for GMS has not been disclosed publicly (Wall Street Journal).
- QXO has stated it will not raise its $5B ($95.20 per share) offer for GMS after Home Depot's competing bid (Bloomberg).
- Shares of GMS surged 20% to $96.99 in premarket trading following news of the takeover bids (Wall Street Journal).
Valuation Changes
Summary of Valuation Changes for Home Depot
- The Consensus Analyst Price Target has risen slightly from $427.75 to $437.56.
- The Consensus Revenue Growth forecasts for Home Depot has risen from 3.1% per annum to 3.4% per annum.
- The Future P/E for Home Depot has risen slightly from 31.21x to 32.07x.
Disclaimer
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