Home Depot stock hits $460? 1 Wall Street analyst thinks so.

Home Depot (HD -1.35%) it may be a big, stable company, but it hasn’t stopped pursuing growth and innovation. The retail giant recently completed its latest acquisition that management says will increase its total addressable market by an additional $50 billion. The acquisition of SRS Distribution is just one of the reasons why one Wall Street analyst thinks Home Depot stock is worth buying now, even as the stock nears an all-time high.

According to reports, Loop Capital analyst Laura Champine just upgraded the stock from “hold” to “buy” and raised her firm’s price target from $360 to $460 per share. That price would represent an upside of more than 12% from recent levels and is about 10% above the stock’s all-time high.

Home Depot still has a lot of growth ahead of it

Loop Capital’s research director also believes several macroeconomic factors will lead to a reversal of recent sluggish demand in the home improvement sector. In its most recent quarterly report (for the period ended July 28), Home Depot said comparable sales fell 3.3 percent year-over-year. Management projects that full-year comparable sales will decline by a similar amount compared to 2023. However, the analyst sees near-double-digit long-term growth for Home Depot.

Champine noted several positive factors, including a cycle of declining interest rates, the recent resolution of the port workers’ strike and an increase in demand from repair and reconstruction efforts due to major damage this season.

The acquisition of SRS could also be opportune for increased demand in residential markets. The commercial distribution company serves professional roofers, landscapers and pool contractors. And even if the resumption of growth doesn’t happen immediately, investors are collecting a dividend from Home Depot that has a history of steady growth. Home Depot’s dividend, which yields about 2.25%, has grown nearly 380% over the past decade.

Stock nears record highs, even as sales slump. The stock is likely to reach Champine’s projected price if this trend reverses in the near future.