11:44 AM EDT, 08/20/2025 (MT Newswires) -- Home Depot's ( HD ) Q2 results provided evidence that the company should see "outsized gains" as a recovery takes shape, UBS said in a Tuesday note.

UBS said it viewed Home Depot's ( HD ) Q2 comparable sales growth of 1% as an indication that customers were still engaging with smaller home improvement projects despite an unfavorable backdrop and consumer uncertainty.

The analysts said that the use of pricing to manage tariffs should bode well for the company in the second half of the year.

On Tuesday, Home Depot ( HD ) reported its Q2 results that missed analysts expectations. The company reaffirmed its full-year sales growth outlook of about 2.8% and continued to expect adjusted EPS to drop about 2% from $15.24 in fiscal 2024 with analysts expecting $14.99.

UBS' rating on Home Depot ( HD ) stands at buy with an unchanged $475 price target.

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