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Home Depot upgrades to Buy, sees 30% upside despite near-term margin pressure and stock decline.

Analyst Insights
30 Oct 2026, 18:30 WIB
Seeking Alpha
View Source
Bullish
Home Depot upgrades to Buy, sees 30% upside despite near-term margin pressure and stock decline.

Home Depot's Pro and SRS Distribution segments are outperforming DIY, with guidance for mid-single-digit organic sales growth in FY2026 driven by strong cross-selling. However, ongoing promotional activities funded by tariff refunds and increased logistics spending may pressure margins in the second half of 2026, posing downside risks. The stock has dropped over 20% since September 2025 amid high inflation and mortgage rate pressures, but the analyst upgrades to a Buy rating, recommending patience and targeting entry near $270 for a dividend yield boost and over 30% upside to a long-term price target of $367.60.

Home Depot shares are trading at USD 329.27 on Pluang, showing a slight increase of 0.09% as of Oct 30, 2026 22:41 WIB. The stock has a dividend yield of 2.83%, with 66% of Pluang users buying and a typical hold time of 141 days.

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