Bond.az - RBC Capital lowered its price target on Home Depot shares to $340 from $377 while maintaining a Sector Perform rating.
The stock currently trades at $302.44 with a market cap of $301 billion, down 11.5% year-to-date.
The firm reduced its second-quarter comparable sales estimate to 0.2% from 1.0% and adjusted EPS estimate to $4.65 from $4.70.
RBC Capital said housing turnover remains stalled and the category demand and cost outlook has worsened.
For 2026 and 2027, RBC Capital now projects comparable sales growth of 0.8% and 1.6%, down from prior estimates. Adjusted EPS estimates were lowered to $14.80 and $15.46 from $15.00 and $15.72.
According to data, the stock is trading near its 52-week low of $289.10, though analysis suggests it may be slightly overvalued at current levels.
The new price target is based on 22 times the revised 2027 adjusted EPS estimate of $15.46, down from a 24 times multiple. RBC Capital cited an outlook for higher interest rates for a longer period.
Home Depot delivered a modest first-quarter earnings beat but reaffirmed its 2026 guidance, which RBC Capital views as at risk given the weakened outlook.
In other recent news, Home Depot reported Q1 2026 adjusted EPS of $3.43, slightly above the forecast of $3.41. Revenue reached $41.8 billion vs. expected $41.51 billion. Several analyst firms lowered price targets: D.A. Davidson to $377, Mizuho to $385, Wolfe Research to $365, Jefferies to $361.
