Wall Street analysts have reduced their price targets for The Home Depot, Inc. (HD) in mid-May 2026, reflecting growing concerns over consumer discretionary spending.
Piper Sandler and Wells Fargo both adjusted their recommendations, citing persistent sluggish demand in the home improvement sector.
Piper Sandler Adjusts Price Target
On May 15, Piper Sandler lowered its price target for Home Depot to $421 from $422.
The firm maintained an Overweight rating on the shares.
Piper Sandler noted that while consumer spending has shown relative resilience, first-quarter tax refunds largely failed to stimulate retail sales.
Middle- and upper-income households chose to save the cash instead, the firm observed.
The adjustments come as sluggish demand trends recorded during the fourth quarter have persisted into the new year for the home improvement market.
Home Depot continues to distribute home improvement products, building materials, lawn supplies, and maintenance items across its physical and digital storefronts.
Wells Fargo Also Cuts Price Target
One day earlier, on May 14, Wells Fargo decreased its price target for Home Depot to $375 from $420.
The banking institution held its Overweight rating.
Wells Fargo noted that discretionary retail has fallen out of favor with investors.
Recent industry assessments indicate softer overall market conditions.
According to Wells Fargo, market skepticism remains high for corporations projecting stronger financial performance during the second half of the year.
The firm also stated that nearly every company within its Hardlines sector evaluation has experienced a year-to-date decline.
This decline is due to fading stimulus expectations, rising oil prices, and weakened broader spending patterns.
The lowered price targets reflect ongoing challenges in the retail sector, as elevated gas prices continue to pressure household budgets.
