Market Overview

Sterne Agee CRT Upgrades DR Horton To Buy, Says This Was Bigger Catalyst Than Expected

  • The share price of D.R. Horton, Inc. (NYSE: DHI) has appreciated 13.68 percent over the last year, reaching a high of $32.61 on December 29, 2015.
  • Jay McCanless of Sterne Agee CRT has upgraded the rating on the company from Neutral to Buy, while raising the price target from $28 to $33.
  • McCanless believes that D.R. Horton’s focus on entry level consumers coincides with a positive view on the buyer segment and that the company is the best positioned to serve the first timer market.

Analyst Jay McCanless mentioned that Express, the company’s pure entry level product, has grown from 4 percent of units closed in F1Q14 to 21 percent of units closed in F4Q15, while orders grew from 3 percent to 22 percent during the same period.

D.R. Horton expects Express to grow to 20 percent of revenues by the end of FY16, with the geographic rollout of the brand having mostly being completed by end of FY16 as well.

In addition, McCanless stated that the FHA’s insurance premium cut in January 2015 was a bigger than anticipated catalyst for entry level buyers.

According to the Sterne Agee CRT report, “Since FHA financing is the only choice for many first-time buyers, we believe DHI's targeted focus on the entry-level buyer starting in late 2013 was a perfectly timed strategy shift.”

D.R. Horton is scheduled to reports its F1Q16 earnings on January 25. McCanless expects the company to report an 8.4 percent year on year growth in housing revenues and a 4 percent year-on-year increase in average closing price, with 4.3 percent increase in unit closings.

Latest Ratings for DHI

Oct 2020BTIGMaintainsBuy
Sep 2020Credit SuisseMaintainsOutperform
Aug 2020WedbushDowngradesOutperformNeutral

View More Analyst Ratings for DHI
View the Latest Analyst Ratings


Related Articles (DHI)

View Comments and Join the Discussion!

Posted-In: Jay McCanless Sterne Agee CRTAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

INTCJP MorganMaintains70.0
STMCanaccord GenuityMaintains47.0
ELDeutsche BankMaintains248.0
UAADeutsche BankMaintains13.0
INTCDeutsche BankMaintains55.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at