Home Depot Inc. shares ticked higher in morning trading, rising 1.6% after two major Wall Street firms raised their price targets on the retailer within hours of one another. Bank of America increased its target to $412 from $374 while maintaining a Buy rating, and TD Cowen lifted its target to $410 from $375 and kept a Buy-equivalent stance - both publications appeared before 10 a.m. ET today.
The analyst moves came as the company heads into its fiscal second-quarter 2026 earnings report, scheduled for August 18, which is one week away. The pair of price-target increases appear to have triggered concentrated buying interest in the stock, pushing Home Depot to $356.42 and marking it as one of the more notable performers in the consumer discretionary space during the session.
Wall Street consensus ahead of the print calls for revenue near $47.5 billion and earnings per share of about $4.71 for the quarter. Those estimates imply only modest year-over-year improvement, and investors are expected to scrutinize comparable-store sales trends, demand from professional contractors, and any commentary or revisions to full-year guidance.
The broader U.S. equity market offered a largely neutral backdrop on the day, limiting macro-driven momentum. The S&P 500 rose roughly +0.1% and the Dow Jones Industrial Average also added about +0.1%, while the Nasdaq was essentially flat. That muted market environment suggests that company-specific analyst activity - rather than a broad sector or index tailwind - was the primary driver of Home Depot's share price move.
In sum, the consecutive price-target increases from two influential sell-side firms, both expressing conviction ahead of the August 18 earnings release, appear to have been the main catalyst for the stock's advance during the morning trading session.
Summary
Two Wall Street firms raised Home Depot price targets early in the session, coinciding with a 1.6% morning uptick in the stock as investors position ahead of the company’s fiscal Q2 2026 results on August 18.
Key points
- BofA raised its target to $412 from $374 and kept a Buy rating.
- TD Cowen raised its target to $410 from $375 and maintained a Buy-equivalent rating.
- Investors are focused on comparable-store sales, contractor demand, and possible updates to full-year guidance; the company is expected to report roughly $47.5 billion in revenue and about $4.71 in EPS for fiscal Q2 2026.
Risks and uncertainties
- Actual fiscal Q2 2026 results could differ from current estimates, creating volatility around the August 18 earnings release - impacting retail and consumer discretionary sectors.
- Analyst-driven momentum may fade if the broader market moves or if company-specific news during the earnings report fails to meet investor expectations - relevant to equities and investor sentiment.