Jefferies has raised its price target on Home Depot stock (NYSE:HD) to $454 from $424 while keeping a Buy rating on the shares. The company shares currently trade at $384.71, translating to a market capitalization of $382.6 billion and a price-to-earnings ratio of 26.25.
In explaining the change, Jefferies pointed to management commentary that highlighted steady comparable sales patterns across different geographic areas, despite those markets facing varied movements in home prices. The firm noted that the absence of significant regional performance dispersion supports its assessment that the housing recovery is still in its early stages.
Looking further ahead, Jefferies projects that Home Depot will deliver high single-digit to low double-digit percentage growth in earnings per share for consecutive years beginning in calendar year 2027. The firm reiterated its Buy recommendation on the home improvement retailer.
Separately, analysis available through InvestingPro indicates that Home Depot appears overvalued at current market levels. The Pro Research Report also flags that the company has increased its dividend for 16 consecutive years, a detail presented among other findings in the comprehensive report.
Home Depot's most recent earnings report for the fourth quarter of 2025 showed results above Wall Street expectations. The company posted adjusted earnings per share of $2.72, ahead of the $2.54 consensus, and reported revenue of $38.2 billion compared with the forecasted $38.14 billion. Those outcomes were described as evidence of the firm's resilience in a challenging retail setting.
Following the quarterly results, Truist Securities raised its price target on Home Depot to $424 from $405 and maintained a Buy rating. Truist attributed the revision to the solid fourth-quarter performance and a modest increase in January sales.
Home Depot also delivered positive U.S. comparable sales for each month of calendar year 2025. Management noted these gains occurred despite the absence of storm-related demand and against progressively tougher year-over-year comparisons in the latter part of the year.
Taken together, the analyst upgrades, reaffirmations of Buy ratings, and quarterly outperformance underline continued investor interest in the company. At the same time, available valuation analysis suggests the stock may already price in a considerable portion of expected improvement.