As previously reported, Wedbush analyst Jay McCanless downgraded D.R. Horton to Neutral from Outperform with a price target of $96, down from $104. The price cuts needed to maintain sales volume for Q2 and potentially Q3 may prove steeper than the firm previously expected. As a result of the price cuts, potentially less unit volume than expected in the first half of 2023, and lower than normal profit levels in Financial Services, Wedbush reduced its EPS estimates. After adjusting to those new levels, the firm believes the current stock price fairly reflects both the year-over-year order declines it expects for the first half of 2023 and the year-over-year order growth still expected for the second half of 2023.
Published first on TheFly
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Read More on DHI:
- D.R. Horton downgraded to Neutral from Outperform at Wedbush
- D.R. Horton price target raised to $99 from $98 at Goldman Sachs
- D.R. Horton: Goal is to generate FY23 revenue slightly higher than FY22
- D.R. Horton sees Q2 revenue $6.3B-$6.7B, consensus $6.53B
- D.R. Horton reports Q1 EPS $2.76, consensus $2.26
