Is Home Depot Stock Going to $425? 1 Wall Street Analyst Thinks So.

At least six Wall Street analysts lowered their price targets on The Home Depot (NYSE: HD) stock after the company's second-quarter earnings release on Aug. 13. However, a UBS analyst decided to take a different view and upgraded his price target to $425 from $400 while maintaining a buy rating on the stock.It's unusual to see an analyst upgrade a price target after management comes out and lowers its full-year expectations for sales and earnings. Home Depot's management now expects its full-year comparable sales to decline by 3%-4% compared to prior guidance for a 1% decline. Full-year diluted earnings per share are now expected to decrease by 2%-4% compared to previous guidance for a 1% increase.That said, it's no secret that relatively high interest rates have curtailed the housing market and spending on home-related items, with a raft of companies, including Whirlpool and Pool Corp., talking of deteriorating end-market conditions. As such, the bulls are assuming much of the bad news is already in the price, and the only way is up for Home Depot stock, as the only way is down for interest rates.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool