Forestar Group price target raised to $40 from $35 at BTIG

BTIG raised the firm’s price target on Forestar Group to $40 from $35 and keeps a Buy rating on the shares. With signs of recovery in housing demand for larger builders as mortgage rates have dropped and with housing starts growth likely to accelerate in 2024 with supply chains normalizing, lot demand should grow as builders look to add communities for 2025 and beyond, the analyst tells investors in a research note. The Forestar story is unappreciated by the Street, with a significant opportunity to gain market share in the most critical raw material in homebuilding – the lot, the firm added.