Home Depot price target raised to $450 from $380 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Home Depot (HD) to $450 from $380 and keeps an Overweight rating on the shares. After having hosted meetings with management including CFO Richard McPhail and others, the firm is increasing its 2026 target multiple to about 25.5-times and raising its 2026 estimates by 4%. Multiples for home improvement retailers Home Depot and Lowe’s (LOW) have historically risen during interest rate cutting cycles prior to comps inflecting and even though an expected same store sales inflection and/or slope of a demand recovery in 2025 “may not be steep, this is appreciated by the market,” says the analyst, who adds that “the sector is bottoming with signs that a turn is near.”