Home Depot (HD) is expected to slightly beat profit estimates and Lowe's (LOW) may meet Q1 targets but could lower its outlook, while Target (TGT) will beat low Q1 expectations, RBC Capital Markets said in a note Thursday.

Home Depot's Q1 same-store sales are expected to be flat, with EPS seen at $3.62 after a technical adjustment, the investment firm said.

Management may also highlight $2 billion to $3 billion in expected tariff costs, which could be partly covered by raising prices and working with suppliers, RBC said.

Lowe's Q1 sales are forecast to drop 2%, with EPS at $2.90, while spring demand may shift to Q2, RBC analysts noted, adding that new tariffs could add up to $3 billion in costs, partly offset by the company.

Target's Q1 sales are expected to fall 1%, with EPS down to $1.65 amid weaker demand and higher costs, according to the note.

RBC maintained sector perform ratings for Home Depot and Lowe's and cut their price targets to $399 from $424 and $244 from $285, respectively. The firm reiterated an outperform rating for Target and lowered its price target to $112 from $151.

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