Home Depot Positioned to Benefit From 'Eventual' Housing Recovery, RBC Says

MT Newswires Live12-11 00:49

Home Depot (HD) is positioned to benefit from an "eventual" housing recovery that could take longer than anticipated, RBC Capital Markets said in note emailed Wednesday.

The company's investments over the past decade in technology, supply chain, and acquisitions should lead to steady market share gains and a compounding effect when the housing market inflects, the investment firm said.

Home Depot, however, noted that housing recovery timeline remains uncertain and issued a 2026 outlook that includes a base case scenario of a "roughly flat" home improvement market and a market recovery scenario with increased momentum in housing activity, RBC said.

"We believe management's decision to issue two scenarios speaks to the challenges with housing affordability and a lack of clear catalysts to fix the issue," RBC said.

RBC lowered its price target on Home Depot to $366 from $376, while reiterating its sector perform rating.

Price: 345.82, Change: +0.55, Percent Change: +0.16

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