Citi "selectively' positive on homebuilders for 2023

Azek

10/01/2023 14:42

** Citi Research "selectively positive" on homebuilders,
orders in second half of 2023 being the key catalyst for the
group, along with free cash flow improvement as builders cut
land spend  
    ** Expects new home prices to fall 15% from peak,
stabilizing activity in second half of 2023 
    ** Chooses PulteGroup Inc  PHM.N  as top pick for
homebuilder, Vulcan Materials Co  VMC.N  for construction
material provider   
 Company                    PT change   Rating
 PulteGroup Inc  PHM.N      $56 from    "Buy"
                            $49         
 D.R. Horton Inc  DHI.N     $111 from   "Buy"
                            $91         
 Vulcan Materials Co        $211 from   "Buy" 
  VMC.N                     $194        
 AZEK Company Inc  AZEK.N   $23 from    "Neutral" from
                            $21         "Buy"
 (Reporting by Pratyush Thakur in Bengaluru)
 ((pratyush.thakur@thomsonreuters.com))