Analyst Simeon Gutman of Morgan Stanley maintained a Buy rating on Home Depot (HD – Research Report), with a price target of $450.00.
Simeon Gutman has given his Buy rating due to a combination of factors that suggest Home Depot is well-positioned for future growth despite current challenges. The company’s strong execution and ongoing investments are preparing it for a potential upturn in the home improvement market, even as demand remains subdued. This strategic positioning reflects Home Depot’s disciplined management and ability to navigate a stagnant market environment, which is expected to persist into 2025.
While the initial 2025 earnings guidance is slightly below consensus, Gutman views it as reasonable and potentially conservative. The focus on investments in complex projects and the Pro channel, along with stable top-line performance, indicates that Home Depot is building a solid foundation for future growth. The company’s balanced inventory and increased capital expenditure further support this outlook, suggesting that Home Depot is making the right moves to capitalize on any future market recovery.
In another report released today, Barclays also maintained a Buy rating on the stock with a $420.00 price target.