D.R. Horton downgraded to Peer Perform on valuation at Wolfe Research

Wolfe Research analyst Truman Patterson downgraded D.R. Horton to Peer Perform from Outperform without a price target. The analyst cites valuation for the downgrade, saying the equity will generally perform inline with the group moving forward. While the core homebuilder operations are "healthy," the ultimate path for D.R. Horton’s single-family rental business remains uncertain moving through 2023 as contacts suggest cap rates in the space have increased and the spread between bid and builder ask remains wide, the analyst tells investors in a research note. The firm would look to get more aggressive on the shares with a pullback that provides more compelling upside versus the group.