Get Used to the Housing Market’s New Normal—and Buy Home Depot Stock, Analyst Says | Global News Avenue

housing Limited turnover. mortgage Increased rates. Tariffs may put pressure on the housing market. But businesses will be at Home DepotHDMelius research analysts say that because homeowners can’t postpone the renewal of their homes forever.

The team believes Americans will soon continue relocation and renovation programs, accepting mortgages and inflation as the new normal. Melius Research Analysts wrote Tuesday that this will result in a series of construction projects benefiting from home renovation businesses such as Home Depot.

Analysts set a $455 target for the stock, which is much higher than the average target of the visible Alpha tracked analysts and nearly 16% above Tuesday’s closing price.

“Given the years of wear and tear, homeowners cannot continue to stop investing in existing homes, or to stop upgrading, downgrading or changing their existing footprint,” Melius Research said. “We believe the deadlock will surface.”

one Major renovation freeze Defrosting may begin based on data shared by Data Home Depot On Tuesday’s awards call morning. Billy Bastek said deals worth $1,000 or above rose 0.9% year-on-year in the last quarter of 2024. Such “big ticket” transactions fell 6.8% year-on-year in the third quarter.

CEO Ted Decker said more Americans are using their home funds to fund projects, adding that he is not sure how much it will change in 2025.

“They will eventually take advantage of the equity and make a bigger remodeling project,” Decker said, according to a transcript provided by Alphasense. “We’re just not sure the turn of 2025 is coming at a sharp acceleration.”

After the company, Home Depot shares ended by nearly 3% Report its latest results.