D.R. Horton price target raised to $142 from $131 at Goldman Sachs

Goldman Sachs analyst Susan Maklari raised the firm’s price target on D.R. Horton to $142 from $131 and keeps a Buy rating on the shares. The analyst cites the company’s Q4 earnings beat while noting that the management’s FY24 guide will likely prove conservative as its earnings call noted that increased use of financial incentives is having the desired effect, with a more limited impact to gross margin vs. investor fears. As sales cycle times approach pre-pandemic norms, the company targets inventory turns at more than 2-times, resulting in greater visibility to closings as well as cash generation, the firm tells investors in a research note.