"" Home Depot Reiterates Sector Weight Rating After Q2 Beat
KeyBanc reiterated a Sector Weight rating on Home Depot (NYSE:HD) following the company's second-quarter results, which exceeded expectations despite ongoing challenges in the industry. Comparable sales improved sequentially, driven by market share gains and strong performance from operations in Canada, Mexico, and SRS.
The company's second-quarter earnings per share received a material benefit from tariff refunds, which were incorporated into its reiterated 2026 earnings per share guidance. This may create a margin headwind in 2027. KeyBanc expects second-half comparable sales could accelerate against easier year-over-year comparisons and limited storm activity in 2025.
The firm revised its estimates for Home Depot and maintained its Sector Weight rating on the stock. Mizuho raised its price target for Home Depot to $390 from $385, citing improved comparable sales growth in the second quarter. RBC Capital lowered its price target slightly to $342 from $343, maintaining a Sector Perform rating due to concerns over lumber inflation and IEEPA tariff refunds.
Key Takeaways:
- Home Depot's second-quarter results exceeded expectations, driven by market share gains and strong performance from operations in Canada, Mexico, and SRS.
- The company's comparable sales improved sequentially, with a 1.7% increase and online sales rising by 11%.
- KeyBanc maintains its Sector Weight rating on Home Depot, citing a cautiously optimistic sentiment among analysts regarding the company's future performance.
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