Market Overview

UPDATE: KBW Downgrades DR Horton to Market Perform Following Q1 Earnings Report

Related DHI
Homebuilders Reverse Rally On August Construction News
Homebuilders Up On Bullish Trade Data, Lennar Corporation Q3 Beat
When Rate Hikes Come, They Will Ripple Across U.S. Economy (Fox Business)

In a research note Wednesday morning, Keefe, Bruyette & Woods downgraded DR Horton Inc. (NYSE: DHI) from Outperform to Market Perform. Despite the ratings downgrade, the firm's Ryan Tomasello raised his price target from $23 to $25.

The note follows DR Horton's Q1 results Tuesday morning before the market opened.

The KBW analyst pointed to several metrics he thought were favorable during DR Horton's quarter, including a moderating cancellation rate, optimism about the upcoming selling season in the Spring and a positive trajectory for future closing prices.

Tomasello called DR Horton shares fairly valued trading at about 1.8x current book value and 1.6x forward book value.

The analyst boosted forward looking EPS estimates for 2014 and 2015 from $1.55 and $1.98 to $1.63 and $2.12, respectively.

Following the research note D.R. Horton, Inc. shares are trading up about 0.2 percent. The stock surged nearly 10 percent on Tuesday following the quarterly figures.

Latest Ratings for DHI

DateFirmActionFromTo
Sep 2014JP MorganUpgradesNeutralOverweight
Jul 2014BarclaysMaintainsOverweight
Jul 2014JP MorganMaintainsNeutral

View More Analyst Ratings for DHI
View the Latest Analyst Ratings

Posted-In: News Downgrades Price Target Analyst Ratings

 

Related Articles (DHI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters