BofA lowers US homebuilder's PT on sluggish demand and policy uncertainty
10/10/2025 13:39
** BofA lowers PT on multiple U.S. homebuilder's on sluggish demand and policy uncertainty; maintains ratings ** Says homebuilders cannot solve affordability alone given the resale home market is much larger than new build (only 27% of inventory) ** "Recent commentary suggests the administration will also examine supply solutions, which could have negative implications to homebuilder stocks," BofA says ** Brokerage says housing affordability has hovered near the lowest level in history over the last three years as home prices (+45% since 2020) and mortgage rates (+418 bps) have surged relative to incomes (+23%) ** Following are the PTs:
| Home Builders | New PT | Old PT |
| Dream Finders Homes DFH.N | $26 | $30 |
| D.R. Horton DHI.N | $165 | $175 |
| KB Home KBH.N | $62 | $67 |
| Lennar LEN.N | $125 | $133 |
| Meritage Homes MTH.N | $80 | $85 |
| NVR NVR.N | $9000 | $9100 |
| PulteGroup PHM.N | $140 | $145 |
| Smith Douglas Homes SDHC.N | $15 | $17 |
| Taylor Morrison Home TMHC.N | $72 | $75 |
| Toll Brothers TOL.N | $150 | $155 |
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