Home Depot (NYSE:HD) Price Target Raised to $420.00 at Morgan Stanley

Key Points

• Morgan Stanley raised its price target on Home Depot to $420 (from $412) and kept an "overweight" rating, implying about a 25.14% upside$414.17 with 20 Buys, 12 Holds and 1 Sell (consensus "Moderate Buy").
• Home Depot beat quarterly estimates with EPS of $2.72 (vs. $2.52 expected) and revenue of $38.20B (vs. $38.01B) despite revenue being down 3.8% year-over-year, and the company set FY2026 guidance of EPS 14.230–14.799 (analysts project ~15.03 EPS).

Home Depot (NYSE:HD - Get Free Report) had its price target boosted by equities researchers at Morgan Stanley from $412.00 to $420.00 in a report issued on Tuesday,MarketScreener reports. The firm currently has an "overweight" rating on the home improvement retailer's stock. Morgan Stanley's price objective would suggest a potential upside of 25.14% from the company's current price.

Several other analysts also recently issued reports on HD. Daiwa Securities Group raised their price target on Home Depot from $360.00 to $390.00 and gave the stock a "neutral" rating in a report on Thursday, February 26th. Telsey Advisory Group restated an "outperform" rating and issued a $435.00 price target on shares of Home Depot in a research note on Wednesday, March 25th. Gordon Haskett lifted their price target on Home Depot from $330.00 to $370.00 and gave the company a "hold" rating in a report on Wednesday, February 11th. Wells Fargo & Company increased their price objective on Home Depot from $395.00 to $420.00 and gave the stock an "overweight" rating in a report on Wednesday, February 25th. Finally, Truist Financial set a $424.00 target price on Home Depot in a research note on Tuesday, February 24th. Twenty research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $414.17.

Home Depot Stock Up 1.0%

HD stock opened at $335.64 on Tuesday. The firm has a market cap of $334.30 billion, a price-to-earnings ratio of 23.54, a PEG ratio of 3.67 and a beta of 1.09. Home Depot has a 1-year low of $315.31 and a 1-year high of $426.75. The firm has a fifty day moving average price of $346.54 and a two-hundred day moving average price of $360.16. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26.

Home Depot (NYSE:HD - Get Free Report) last posted its quarterly earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.52 by $0.20. The company had revenue of $38.20 billion for the quarter, compared to the consensus estimate of $38.01 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The company's revenue for the quarter was down 3.8% on a year-over-year basis. During the same period last year, the firm posted $3.13 EPS. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. Research analysts predict that Home Depot will post 15.03 EPS for the current year.

Insider Activity

In other news, CFO Richard V. Mcphail sold 2,550 shares of the business's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total value of $940,669.50. Following the sale, the chief financial officer owned 44,566 shares of the company's stock, valued at approximately $16,439,951.74. The trade was a 5.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.08% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Stegent Equity Advisors Inc. grew its stake in Home Depot by 2.7% during the third quarter. Stegent Equity Advisors Inc. now owns 1,006 shares of the home improvement retailer's stock worth $408,000 after buying an additional 26 shares in the last quarter. Curio Wealth LLC grew its stake in Home Depot by 13.5% during the fourth quarter. Curio Wealth LLC now owns 218 shares of the home improvement retailer's stock worth $76,000 after buying an additional 26 shares in the last quarter. Unique Wealth LLC grew its stake in Home Depot by 1.2% during the third quarter. Unique Wealth LLC now owns 2,280 shares of the home improvement retailer's stock worth $924,000 after buying an additional 27 shares in the last quarter. Arcus Capital Partners LLC boosted its stake in shares of Home Depot by 1.1% in the 3rd quarter. Arcus Capital Partners LLC now owns 2,445 shares of the home improvement retailer's stock valued at $991,000 after purchasing an additional 27 shares in the last quarter. Finally, Westfuller Advisors LLC boosted its stake in shares of Home Depot by 2.1% in the 4th quarter. Westfuller Advisors LLC now owns 1,325 shares of the home improvement retailer's stock valued at $456,000 after purchasing an additional 27 shares in the last quarter. 70.86% of the stock is owned by institutional investors and hedge funds.

More Home Depot News

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Digital investments are driving store productivity and omnichannel engagement, helping convert online activity into in-store sales and reducing cannibalization — a structural positive for sales efficiency and long-term margins. Home Depot's Digital Growth: Supporting Store Productivity?
• Positive Sentiment: The dividend narrative remains a core bullish argument: income stability and yield support HD as a “forever” holding for income-oriented investors, helping underpin valuation in volatile markets. 1 Reason I'd Buy Home Depot Stock Today and Never Sell
• Neutral Sentiment: Analyst consensus still skews bullish (average brokerage recommendation suggests adding HD), but outlets caution that ABR can be overly optimistic — useful context but not a proven catalyst. Is It Worth Investing in Home Depot (HD) Based on Wall Street's Bullish Views?
• Neutral Sentiment: Valuation debate: some analysts frame HD as evolving into the Pro/infrastructure backbone of the U.S., justifying a premium multiple, while acknowledging recent profit contraction and near-term sales pressure — a mixed read for investors weighing growth vs. multiple. What Justifies Home Depot’s 23x Multiple?
• Negative Sentiment: Wren Kitchens — a U.K. kitchen retailer that had a strategic partnership with Home Depot in 2024 — filed Chapter 7 and shut U.S. operations. Exposure appears limited, but the bankruptcy underscores weak consumer/home investment demand in parts of the category and poses modest reputational/supply questions. Wren Kitchens ceases operations in the US, files for bankruptcy
• Negative Sentiment: Market headlines flagged a session decline for HD amid a broader market uptick, reflecting investor sensitivity to macro and housing-cycle signals rather than company-specific surprises — a near-term headwind for the share price. Home Depot (HD) Stock Falls Amid Market Uptick: What Investors Need to Know
• Negative Sentiment: Industry pressure from a sluggish housing market and cautious consumer spending is prompting store closures and bankruptcies for some specialty players — a macro backdrop that can weigh on Home Depot’s comps and margin outlook. Home Depot partner and rival closes, files Chapter 7 bankruptcy

Home Depot Company Profile

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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