UBS’s price target
On June 20, UBS raised its price target for Home Depot (HD) from $212 to $225 and maintained its “buy” rating. The new price target represents a rise of 13.0% from the current stock price.
Other analysts’ recommendations
Of the 35 analysts that follow Home Depot, 77.1% are favoring a “buy,” and 22.9% are favoring a “hold.” None of the analysts were favoring a “sell” recommendation. On average, analysts are expecting the stock price of the company to reach $211.57 in the next 12 months, which represents a return potential of 6.3%. Since the announcement of Home Depot’s first-quarter earnings on May 15, Jeffries has lowered its price target from $223 to $218, while Deutsche Bank has cut its price target from $212 to $210.
Home Depot’s stock price moves in tandem with analysts’ recommendations. When analysts raise their price target, the stock price tends to rise and vice versa. Currently, Home Depot is trading below analysts’ 12-month price target. However, this doesn’t mean an automatic “buy.” Investors are advised to analyze analysts’ estimates before making any investment decisions.
For the next four quarters, analysts are expecting Home Depot to post revenue of $109.2 billion, which represents growth of 7.1% from $102.0 billion in the corresponding four quarters of the previous year. During the same period, Home Depot’s EPS is expected to rise 21.7% to $9.60.
The price target and return potential of Home Depot’s peers are as follows:
- Lowe’s (LOW): price target of $107.41 with a return potential of 9.1%
- Williams-Sonoma (WSM): price target of $55.10, which represents a fall of 14.6% from its current stock price
- Bed Bath & Beyond (BBBY): price target of $17.76, which represents a fall of 13.0% from its current stock price
Next, we’ll look at Home Depot’s stock performance.