Stifel Upgrades Home Depot Stock (HD) on “Increased Conviction” in Revenue Ramp

Stifel upgraded Home Depot (HD) stock from Buy to Hold, citing “increased conviction” in the revenue acceleration, as reflected in the FY 2026 to FY 2027 estimates. The upgrade follows the home improvement’s mixed results for the first quarter of Fiscal 2025. While the company missed analysts’ earnings estimates, it surpassed revenue expectations and maintained the full-year guidance despite macro uncertainties.

Here’s Why Stifel Turned Bullish on Home Depot

Stifel analyst Andrew Carter upgraded Home Depot stock and increased the price target to $425 from $405, noting accelerating sales momentum and revived confidence in the company’s longer-term growth outlook.

The 4-star analyst thinks that HD’s accelerating comparable sales through Q1 FY25 was the key positive takeaway from the results. In particular, he highlighted that April U.S. comparable sales grew about 2.5%, excluding Easter. Carter’s revised price target reflects his confidence about the retailer being well-positioned to benefit from an eventual rebound in home improvement demand. “We view a fulsome home improvement category inflection as a ‘when not if,’” said Carter.

While Home Depot maintained its full-year guidance, the analyst believes recent trends point to upside to the estimates. He added that HD’s Q1 FY25 performance reflects the company’s “idiosyncratic advantages,” suggesting upside potential to the FY25 outlook.

Is HD a Good Stock to Buy?

Aside from Carter, several other analysts also raised their price target for Home Depot stock, acknowledging the company’s strong execution. For instance, J.P. Morgan analyst Christopher Horvers reiterated a Buy rating on HD stock and increased the price target to $418 from $410, saying that the bull case for the company is growing again. The 5-star analyst expects HD to deliver modest upside to sales and margins as the year progresses.

Overall, Wall Street has a Moderate Buy consensus rating on Home Depot stock based on 21 Buys, seven Holds, and one Sell recommendation. The average HD stock price target of $427.32 implies about 15.2% upside potential.

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