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.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on DHI:
- DHI Earnings: D.R. Horton Jumps on Robust Q2 Performance
- Options Volatility and Implied Earnings Moves Today, April 18, 2024
- D.R. Horton reports Q2 homes closed increased 15% to 22,548 homes
- D.R. Horton raises FY24 revenue view to $36.7B-$37.7B from $36B-$37.3B
- D.R. Horton reports Q2 EPS $3.52, consensus $3.06
