Home Depot Inc (NYSE: HD) has already gained over 20% since late October but a Wells Fargo analyst is convinced it can push further up in the coming months.

Zachary Fadem named the home improvement retailer a “top pick” for 2024 in his research note on Thursday. His $385 price objective suggests about a 13% upside from here.

The analyst is bullish on Home Depot stock as it has “growth/recovery levers, margin recapture, and idiosyncratic Pro opportunity”.

His call arrives over a month before the multinational is scheduled to report its financial results for the fourth quarter. Consensus is for it to earn $2.75 a share versus $3.3 per share a year ago.

Note that $HD is about 20% down versus its all-time high at writing.

Zachary Fadem also told clients in his research note on Thursday that he likes the setup in Home Depot stock in “both bull/bear case industry scenarios”.

The analyst expects a “quality name” like Home Depot to particularly benefit once rates start to move down. Members of the Federal Open Market Committee recently signalled three rate cuts in 2024 as Invezz reported here.

Also on Thursday, analysts at Barclays also upgraded $HD to “overweight” as “our macro model supports improving comps through 2024 and into 2025.”

The firm raised its price target on the New York listed firm today to $372 per share.

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