D.R. Horton Inc.
DHI,
stock was up 1.2% in premarket trading on Monday after Raymond James upgraded the home builder to outperform from market perform, with a price target of $160 a share. Raymond James also boosted the company’s 2024 profit outlook by 25%, due to “an impressive rebound in homebuilding margins and a surging revenue contribution from its $3 billion rental housing portfolio,” said analyst Buck Horne. Across the home building sector, pricing power has stabilized more quickly than many anticipated this year amid a historic dearth of available re-sale inventory. “The magnitude of pent-up demand for single-family homes – coupled with the proven resilience of builders’ de-risked operating models – warrants a refreshed valuation approach and wholesale reconsideration of traditional frameworks,” Horne said.
