Home Depot (HD) PT Lowered to $340 at RBC Capital

RBC Capital analyst Steven Shemesh lowered the price target on Home Depot (NYSE: HD) to $340.00 (from $377.00) while maintaining a Sector Perform rating.

The analyst comments: “HD delivered a modest 1Q EPS beat, but housing turnover remains stalled and the category demand/cost outlook has worsened, which in our view creates risk to reaffirmed 2026 guidance. For 2Q, we lower our comp estimate to +0.2% (+1.0% prior) and adj. EPS estimate to $4.65 ($4.70 prior). For 2026/2027, we now model comp sales +0.8%/ +1.6% (+1.6%/+2.5% prior) and adj. EPS $14.80/$15.46 ($15.00/$15.72 prior). Our PT comes down to $340 ($377 prior) based on 22x (24x prior) our revised 2027 adj. EPS estimate of $15.46. The lower multiple reflects an outlook for higher for longer rates. At 19.5x our revised 2027 adj. EPS estimate (2015-2019 avg. 19.0x), we think shares largely embed guidance risk, though we continue to struggle with the catalyst for numbers to move higher. The risk to reward does skew positive for investors with duration.”

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