RBC Capital lowered the firm’s price target on D.R. Horton to $141 from $142 and keeps an Underperform rating on the shares after its Q1 results. The firm is reducing its FY24 EPS view on the stock by 20c to $13.94 despite the company’s earnigns beat, modeling incremental gross margin pressure from higher-for-longer incentive use and lower near-term rental profits offsetting the near-term upside to closings, the analyst tells investors in a research note. D.R. Horton has also characterized demand as good but acknowledged that it will move incentives as needed to support sales, the firm adds.
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