Behind Stifel's call is the firm's belief that home improvement spending is on the rise.
"It is our view that spending on the home is currently accelerating after a 6-8 year period of under-spend due to the collapse of the housing market. Home prices are accelerating, which improves consumers' balance sheet and fosters confidence in spending on the home...Our coverage of many of the vendors selling into Home Depot and Lowe's indicates business is improving currently," Stifel's John Baugh wrote.
With a $157 price target on Home Depot -- a 15% upside -- and a $100 target on Lowe's -- a 22% upside -- the firm sees room for the stocks to run.
On the "Halftime Report" today the desk debated the call, and whether or not the home improvers are heading higher.