RBC Maintains Sector Perform Rating on Home Depot (HD) Stock

On Wednesday, May 21, RBC Capital Markets maintained its “Sector Perform” rating on The Home Depot, Inc. (NYSE:HD) and kept the price target steady at $399.

This decision follows the company’s Q1 results, which met expectations. The company also confirmed its guidance for the future. RBC Capital’s analyst highlighted an improvement in the outlook for comparable store sales growth. However, the analyst also noted some concerns about the potential impact of management’s pricing strategies on earnings.

RBC Keeps Home Depot (HD) Rating, Slightly Raises Forecast

A home improvement store overflowing with a variety of products and supplies.

Following the earnings report and guidance, RBC Capital adjusted its forecast slightly. For Q2, the firm expects comparable sales to grow by 1.7%, a slight increase from the previous 1.5% estimate. The adjusted earnings per share (EPS) forecast for Q2 also increased slightly to $4.71 from $4.70.

RBC Capital also made small changes to its projects for The Home Depot, Inc.’s (NYSE:HD) performance in 2025 and 2026. The firm expects comparable sales growth of 1.4% for 2025, up from 1.3%, and 3.6% for 2026, which remains unchanged. The adjusted EPS estimates for 2025 and 2026 were also revised to $14.98 and $15.95, compared to the previous $14.95 and $15.94.

The Home Depot, Inc. (NYSE:HD) is one of the world’s largest home improvement retailer. It operates more than 2,300 retail stores and over 780 branches across all 50 US states, the District of Columbia, Puerto Rico, the US Virgin Islands, Guam, 10 Canadian provinces, and Mexico.

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