JP Morgan raises PTs for U.S. homebuilders on improved macro and housing backdrop

NVR

21/12/2023 17:36

** Brokerage J.P. Morgan raises its Price Targets (PT) for
multiple homebuilders in the U.S.
    ** JPM points to a likely improvement in macro and housing
backdrop over the next 12 months, driving its higher PTs
    ** Raises PT on D.R. Horton  DHI.N  to $166 from $136, KB
Home  KBH.N  to $70 from $60, NVR Inc  NVR.N  to $7430 from
$6450, Pulte Group  PHM.N  to $139 from $117 and Toll Brothers
 TOL.N  to $127 from $108
    ** "Our homebuilding universe has rallied 39% since Nov. 1
(S&P: +12%), largely driven by a roughly 100 bps decline in both
the 10-year Treasury and the 30-year mortgage rate to 3.9% and
roughly 7.0%, respectively" - JPM
    ** YTD, the S&P Composite 1500 Homebuilding Sub Index has
gained 78.4%

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))