Raymond James upgrades D.R. Horton after ‘outstanding’ results

Raymond James upgraded D.R. Horton to Outperform from Market Perform with a $160 price target following the “outstanding” fiscal Q3 results. The company saw an “impressive rebound” in homebuilding margins and a “surging” revenue contribution from its $3B rental housing portfolio, the analyst tells investors in a research note. The firm says D.R. Horton’s upside potential further corroborates its view that consensus estimates across the rest of the sector are still chasing numbers higher, as pricing power has stabilized far quicker than many anticipated this year “amid a historic dearth of available re-sale inventor.”