CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month price target of $329, down from $362, is based on 22x our FY 2027 EPS estimate of $14.86, a valuation that aligns with the company's ten-year average. This multiple appropriately balances the significant long-term strategic value of its Pro ecosystem and non-discretionary acquisitions against persistent macroeconomic headwinds that are pressuring its core consumer business. Our FY 27 EPS of $14.86 is down from $15.09 and FY 28's $15.78 is down from $16.33. HD's expansion into essential categories provides a powerful hedge against a pullback in discretionary projects, a key source of resilience in the current environment. However, we believe the current share price already reflects market share gains and formidable free cash flow generation, which we forecast will exceed $30B over the next two years. Ultimately, while HD is executing well and is strategically positioned for long-term success, we see limited upside until there is a clearer catalyst for a recovery in big-ticket consumer spending