Shares of Home Depot Inc (HD  ) have been in focus after receiving an upgrade from Wedbush analysts.

Home equity extraction activity is showing signs of trending higher in 2024, which improves the prospects of the home improvement space, especially large remodel projects, according to Piper Sandler.

The Home Depot Analyst: Peter Keith upgraded the rating for Home Depot from Neutral to Overweight, while raising the price target from $311 to $400.

The Home Depot Thesis: The company looks poised to outperform both the market and rival Lowe's Companies Inc (LOW  ), Keith said in the upgrade note.

"HD's greater Pro exposure and newly built complex Pro capabilities should drive healthy comp growth as large remodel activity returns," the analyst wrote. "HD also has a much more favorable margin set up in 2024 vis-a-vis LOW," he added.

"We expect HD to post strong comp growth by 2H 2024 with further acceleration in 2025 as large remodel spend rebounds," Keith further stated.

HD Price Action: Shares of Home Depot had risen by 0.76% to $358.43 at the time of publication Tuesday.