D.R. Horton initiated with a Hold at Jefferies

Jefferies analyst Collin Verron initiated coverage of D.R. Horton with a Hold rating and $119 price target amid starting coverage on the three largest U.S. homebuilders. While the analyst believes the builders have favorable long-term demand trends, the next several quarters could be “choppy” with buyers facing affordability issues, so the firm is “picking our spots until we get more clarity on the macro,” the analyst tells investors. The firm is cautious on the stock because it believes there is risk that estimates move lower as D.R. Horton looks to use pricing and incentives to stimulate demand, the analyst tells investors.