BofA raises homebuilders' price targets ahead of Q2 earnings

NVR

14/06/2023 13:35

** BofA Global Research raises price targets of homebuilders
ahead of Q2 earnings
    ** Brokerage raises earnings estimates by 2% to 4% to
reflect "robust" new home demand
    ** Adds sequential improvement in gross margins of
homebuilders in second half of 2023 on better pricing and lower
lumber costs
  
 Homebuilders                       New PT    Old PT 
 D R Horton Inc  DHI.N              $130      $122
 Lennar Corp  LEN.N                 $120      $103
 PulteGroup Inc  PHM.N              $82       $71
 Toll Brothers Inc  TOL.N           $88       $76
 KB Home  KBH.N                     $52       $39
 Dream Finders Homes Inc  DFH.N     $24       $18
  ** YTD, S&P 500 Homebuilding (Subindex)  .SPLRCHOME  up ~34%,
outperforming ~14% gains of S&P 500 Index  .SPX  

 (Reporting by Pratyush Thakur)
 ((Pratyush.Thakur@thomsonreuters.com))