1039 ET - Home Depot continues to execute at a high level, but end-market conditions remain mixed and valuation suggests limited upside without a clearer path to earnings acceleration, Raymond James analysts said in a research note. The analysts note that the home improvement retailer's 1Q results were broadly in line with expectations and its full-year guidance was reaffirmed, supporting their view that a recovery continues to build slowly. But subdued housing market conditions continue to weigh on project demand, while tariffs and the potential for rising costs in 2H25 could pressure margin flexibility, they add. "With the current industry backdrop, we continue to see limited upside to near-term estimates unless there's a notable demand unlock in coming months," the analysts say. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
May 21, 2025 10:39 ET (14:39 GMT)
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