"Three Wall Street firms hit Home Depot ( NYSE:HD | HD Price Prediction) with price target cuts on the same day following the home improvement giant's Q1 FY2026 results, signaling a coordinated valuation reset across the sell side. Piper Sandler trimmed its target to $378 from $421, RBC Capital lowered to $340 from $377, and Wells Fargo cut to $360 from $375."
"Piper Sandler framed Q1 as a "meet and maintain print," noting continued weakness in large discretionary remodel projects but healthy seasonal sales when weather cooperated. The firm believes notable pent-up home improvement demand won't unlock until mortgage rates move lower. RBC's Steven Shemesh struck a more cautious tone, arguing that housing turnover remains stalled and the demand and cost outlook have deteriorated."
"Wells Fargo split the difference, citing stabilizing early-May trends, hopes of second half re-acceleration, good free cash flow, and a cheap price-to-earnings ratio, with April weather dampening the exit rate. The cuts arrive with HD shares trading near $306, down 11% year to date. That pullback sets the stage for the analyst recalibration now underway."
"Home Depot reported Q1 FY2026 revenue of $41.77 billion, up 5% year over year, with comparable sales of 1% and adjusted diluted EPS of $3.43 versus $3.56 a year ago. Customer transactions fell 1% while average ticket rose 2% to $92.76. CEO Ted Decker characterized results as in line, citing "greater consumer uncertainty and housing affordability pressure " as the dominant headwinds. The company reaffirmed full-year guidance of 3% to 5% sales growth and flat to 4% adjusted EPS growth off a $14.69 base."
Three Wall Street firms reduced Home Depot price targets after the company reported Q1 FY2026 results. Piper Sandler lowered its target to $378 from $421, RBC Capital lowered its target to $340 from $377, and Wells Fargo lowered its target to $360 from $375. Home Depot shares traded near $306, down 11% year to date. Piper Sandler described Q1 as a “meet and maintain print,” citing weakness in large discretionary remodel projects and expecting pent-up demand to improve only when mortgage rates fall. RBC Capital cited stalled housing turnover and deteriorated demand and cost outlook. Wells Fargo pointed to stabilizing early-May trends, hopes for second-half re-acceleration, strong free cash flow, and a low price-to-earnings ratio. Home Depot reported $41.77 billion revenue, 1% comparable sales growth, and adjusted diluted EPS of $3.43.
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