RBC says Dream Finders Homes struggling to produce organic growth, cuts PT

Dream Finders Homes (Texas)

25/03/2022 10:21

** RBC Capital Markets cuts PT on Dream Finders Homes Inc
 DFH.O  to $18 from $19 and remains "Sector Perform"
    ** Brokerage says DFH has continued to struggle to produce
organic growth it had targeted during its IPO process
    ** RBC adds that ongoing supply constraints, extended cycle
times and weak delivery guidance signal continued risks to co's
previous community count ramp-up expectations
    ** Brokerage says it still expects DFH to expand margins at
a slower pace than peers
    ** RBC says downside risk to PT and rating is development
delays and inability to pass through input cost inflation 
    ** However, brokerage notes upside risk will be
better-than-expected volumes and margins, which will lead to
outsized earnings growth 
    ** Up to Thursday's close, stock had risen ~46% since IPO
price of $13 in January

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com))