Century Communities price target lowered to $81 from $89 at Wedbush

Wedbush lowered the firm’s price target on Century Communities to $81 from $89 and keeps an Outperform rating on the shares. While the firm does not have a formal rate forecast, it thinks investors have to either assume 30-year mortgage rates are flat to down versus current, 8% levels, or are flat to higher. If rates are stable to higher in FY24 versus current levels, Wedbush believes the costs of selling the same volume of homes in FY24 versus FY23 may be more expensive due to the rising cost of mortgage rate buydowns.