BofA lowers US homebuilder's PT on sluggish demand and policy uncertainty

Lennar

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

 (Reporting by Parth Chandna)

 ((Parth.Chandna@thomsonreuters.com;))