TD Cowen Cuts Home Depot Price Target to $375, Maintains Buy

TD Cowen lowered its price target on Home Depot (NYSE:HD) to $375 from $450, while reiterating a Buy rating. The adjustment came after the company reported first-quarter results for fiscal 2026, which analysts described as "broadly in line" with expectations amid a challenging market.

Rating Change

• Previous Price Target: $450
• New Price Target: $375
• Rating: Buy

Analyst Rationale

TD Cowen noted that Home Depot's Q1 results showed "solid execution" despite headwinds in the home improvement sector, such as high interest rates and a sluggish housing market. The firm believes the company's cost management and operational discipline support the Buy rating, even as the price target was reduced.

Context

The revision comes as the home improvement sector faces pressure from declining housing demand and rising borrowing costs. Home Depot shares have fallen about 10% year-to-date as of the report date. Other analysts remain mixed, with some seeing long-term value in HD's strong cash flow and dividend history.

What to Make of It

The price target cut reflects near-term caution, but the maintained Buy rating signals confidence in Home Depot's fundamentals. Investors should monitor housing market trends and interest rate moves for further impact on the stock.