Home Depot Stock Receives Positive Ratings Upgrade from Barclays and Wells Fargo
Home improvement retailer Home Depot’s stock (HD) saw a modest increase in early trading on Thursday following bullish moves by sell-side analysts. Barclays analysts upgraded the rating on Home Depot shares to Overweight, expressing a more positive outlook for the home improvement sector over the next 12-24 months. Likewise, Wells Fargo analysts named Home Depot as their Top Pick for 2024, raising the price target to $385 per share. These positive moves reflect the analysts’ bullish stance on the company’s growth potential and recovery prospects.
Barclays Upgrades Home Depot Stock Rating to Overweight, Citing Positive Housing Market Outlook
Barclays analysts upgraded their rating on Home Depot stock to Overweight, motivated by a positive housing market outlook. The analysts mentioned that the upgrade was driven by their expectation of exposure to the housing market and potentially strengthened home prices as interest rates reverse. Their macro model supports the belief that Home Depot’s comparable sales will improve through 2024 and into 2025. They also noted that consensus expectations for 2025 are relatively muted, which further adds to their positive view on the stock.
Wells Fargo Names Home Depot Stock as Top Pick for 2024, Sets $385 Price Target
Wells Fargo analysts named Home Depot stock as their Top Pick for 2024 and increased the price target to $385 per share. They cited several growth and recovery levers, margin recapture, and idiosyncratic opportunities in the professional sector as the reasons for their bullish stance. The analysts acknowledged that while interest rates are falling and Home Depot shares have experienced strong gains, they believe that Wall Street’s estimates for many retail companies, including Home Depot, are too high. Despite potential choppiness in the first half of the year, they prefer defensive and quality names like Home Depot and see it as a top choice within the Hardlines sector.
Analysts Bullish on Home Depot Stock, Expecting Growth and Margin Recapture
Analysts at Barclays and Wells Fargo expressed a bullish outlook on Home Depot stock, with expectations of growth and margin recapture. Barclays analysts highlighted their positive view on Home Depot’s exposure to the housing market, with the potential for strengthened home prices as interest rates reverse. They foresee improving comparable sales through 2024 and into 2025, with consensus expectations for 2025 being relatively muted. Wells Fargo analysts, on the other hand, mentioned growth and recovery levers, margin recapture, and idiosyncratic opportunities in the professional sector as reasons for their bullishness. They believe that Wall Street’s estimates for Home Depot and other retail companies are too high, but see Home Depot as well-positioned for success.
Home Depot Stock Positioned for Success in Both Bull and Bear Market Scenarios
Analysts at Wells Fargo view Home Depot as a stock well-positioned for success in both bull and bear market scenarios. They believe that in the current market environment, where interest rates are falling and Home Depot shares have experienced significant gains, Wall Street’s estimates for many retail companies, including Home Depot, are too high. They prefer defensive and quality names like Home Depot in such a scenario. Furthermore, they see Home Depot as having a favorable setup in both industry scenarios, making it their top choice within the Hardlines sector. This highlights the analysts’ confidence in Home Depot’s ability to perform well regardless of market conditions.
Analyst comment
Positive
