In a report released yesterday, Zachary Fadem from Wells Fargo maintained a Buy rating on Home Depot (HD – Research Report), with a price target of $450.00.
Zachary Fadem has given his Buy rating due to a combination of factors including Home Depot’s solid performance in the fourth quarter and its potential for future growth. Despite a conservative outlook for fiscal year 2025, Home Depot demonstrated a positive inflection in Q4 comparable sales, surpassing expectations with a 0.8% increase. This performance was driven by improved category demand, although challenges remain in larger remodeling projects.
Fadem acknowledges the cautious initial guidance for FY25, which includes modest sales growth and a slight decline in adjusted EPS. However, he views the recent market weakness as a buying opportunity, given Home Depot’s strong share gains in FY24. The company’s strategic initiatives, such as opening new stores and maintaining stable gross margins, further support the Buy rating, suggesting confidence in its ability to navigate macroeconomic pressures and capitalize on market opportunities.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $467.00 price target.