The firm set a price target of $113 for the home improvement retailer, up from its previous mark of $102.
Jefferies also increased annual EPS earnings estimates to $4.50 from $4.49 for fiscal 2015, and to $5.26 from $5.12 for fiscal 2016.
Must Read: Warren Buffett's 25 Favorite Stocks
The firm reiterated its "buy" rating and said strong comparable store sales gains are forecasted, and HD remains a high quality play on the recovery in remodel spending.
"Our field checks in Q3 were surprisingly good despite the data breach and we believe HD saw strength in core building supplies as well as big ticket."
Shares of Home Depot closed at $98.14 on Tuesday.
Separately, TheStreet Ratings team rates HOME DEPOT INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HOME DEPOT INC (HD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."