CFRA analysts have downgraded Home Depot (NYSE:HD) stock to Hold from Buy following yesterday’s earnings report. The new price target for HD stock is $306 per share, down from the prior $340. The downgrade is due to near-term headwinds, including product pricing normalization, digestion of top-line growth, and a forecasted remodeling decline in CY 24.
The earnings report showed demand softness, with big ticket sales falling 6.5% year-over-year and digital sales dropping 3%. As a result, Home Depot shares closed 2.15% lower on Tuesday and are down 10.6% year-to-date.
CFRA analysts remain positive on the long-term outlook for Home Depot, but investors should be aware of the near-term headwinds that could affect the stock’s performance.