Home Depot price target cut $375

Wells Fargo lowered its price target on Home Depot to $375 from $420 on May 14 and kept an Overweight rating on the shares, according to brokerage notes and market reports. The cut came days before Home Depot is due to report first-quarter 2026 results on May 19. Home Depot shares closed at $297.51 on May 15, according to Yahoo Finance market data. The move left the new target above the stock's latest trading price, even as analysts and investors focused on housing demand and cost pressures. ### Why did Wells Fargo reduce the target but keep a bullish rating? May 14 was the date Wells Fargo analyst Zachary Fadem lowered the target to $375 from $420 while maintaining an Overweight rating on Home Depot, according to multiple market services. The combination signals a lower valuation view without a downgrade in the firm's broader recommendation on the stock. (trendonify.com) The $45 reduction amounted to about 10.7%, based on the figures in the note summaries carried by market data sites. Those same summaries said the revised target still implied upside from Home Depot's recent share price. (trendonify.com) ### What is pressuring Home Depot before earnings? Home Depot faces a housing market that remains constrained by elevated borrowing costs and weak turnover, according to analysts cited in recent previews of the earnings report. Yahoo Finance said analysts were watching high mortgage rates and soft housing turnover as headwinds into the May 19 release. (trendonify.com) Benzinga reported that macro-sensitive demand was also in focus as investors assessed whether Home Depot could hold up better than the housing backdrop suggests. The report cited the 30-year fixed mortgage rate at 6.37% while noting purchase mortgage applications had risen week over week. (marketbeat.com) ### What did the inflation data show? The U.S. Bureau of Labor Statistics said on May 13 that the producer price index for final demand rose 1.4% in April. Final demand services increased 1.2%, and the agency said two-thirds of that rise was traced to a 2.7% jump in margins for final demand trade services. The BLS defines those trade indexes as measures of changes in margins received by wholesalers and retailers. (benzinga.com) Those figures fed concern in retail stocks about tariff-related and wholesale cost pressures, according to market commentary published after the inflation report. Federal Reserve researchers said in a March note that tariffs in 2025 had gradually raised retail prices, adding another data point investors have used when assessing consumer-facing companies. (bls.gov) ### How have other analysts framed the stock? Bernstein also lowered its Home Depot target on May 14, cutting it to $365 while maintaining a Market Perform rating, according to market reports. That added to a series of downward revisions ahead of earnings. (federalreserve.gov) MarketBeat and TipRanks both listed Home Depot's next earnings report for May 19, with consensus earnings estimates around $3.41 to $3.42 per share. Those figures would be below the year-earlier quarter, based on the services' published estimates. ### What should investors watch on May 19? Home Depot's investor relations site lists its first-quarter 2026 earnings release for Tuesday, May 19, at 9:00 a.m. (sahmcapital.com) ET. The same page lists the company's annual meeting of shareholders for May 21 at 9:00 a.m. ET. Investors will be watching Home Depot's sales trends, demand commentary and any update on how management sees housing conditions and costs affecting the rest of 2026. (marketbeat.com) (ir.homedepot.com)