Homebuilding stocks leveled amid PT cuts, rate concerns

Armstrong World Industries

21/03/2022 17:23

** Homebuilder stocks down on Mon: Lennar  LEN.N  off 5.0%, DR
Horton  DHI.N  off 3.9%, Pultegroup  PHM.N  off 4.6%
    ** S&P 1500 homebuilding index  .SPCOMHOME  down 4.3%
against 0.9% drop for S&P 500
    ** Slide deepens for homebuilding stocks after Fed chair
Powell comments that U.S. central bank must move "expeditiously"
to bring too-high inflation to heel, and could use
bigger-than-usual interest rate hikes if needed to do so
 urn:newsml:reuters.com:*:nS0N2VH008
    ** In note earlier on Mon, Jefferies analysts said, "with a
more inflationary & aggressive rate hike backdrop, we see an air
pocket in housing in 2H22/early 2023"
    ** Jefferies downgrades Installed Building Products to
"hold", cuts PT to $105 from $117; IBP shares down 7.5% to
$97.40  urn:newsml:reuters.com:*:nFWN2VO08H urn:newsml:reuters.com:*:nFWN2VO00L
    ** Jefferies also cuts Fortune Brands Home & Security
 FBHS.N  to "hold", PT to $95 from $120; FBHS last down 4.7% to
$82.87  urn:newsml:reuters.com:*:nFWN2VO05W urn:newsml:reuters.com:*:nFWN2VO039
    ** Jefferies did upgrade Armstrong World Industries  AWI.N 
to "buy"; AWI last up 1.8%  urn:newsml:reuters.com:*:nFWN2VN016
    ** KBW cuts PT on Lennar to $125 from $134, but keeps
"outperform" rating; while "rates, inflation, and supply chain
issues are risks to the outlook, low housing supply and
persistent demand remain offsetting factors," KBW analysts said
 urn:newsml:reuters.com:*:nFWN2VN04P
    ** YTD, S&P 1500 homebuilders index down ~22% vs ~7% drop
for S&P 500

 (Reporting by Lewis Krauskopf)
 ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters
Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net,
Twitter: @LKrauskopf))