BofA Lowers Outlook for Home Builders in Challenging Environment -- Market Talk

Dow Jones

Jul 19

1211 ET - BofA Securities lower their 2025 and 2026 EPS estimates for home builders ahead of 2Q earnings to reflect lower closing volume due to a slowdown in sales/absorption pace and elevated incentives/price reductions. The analysts expect the challenging environment for home builders to persist in the 2H of the year as they expect lower net price as builders use incentives and price reductions to offset elevated mortgage rates and affordability challenges and finished lot inflation remain a margin headwind, among other factors. They maintain their buy rating on those with attractive valuations or a more built-to-order business like Meritage Homes or NVR but adjust price objectives on D.R. Horton, Lennar and KB Home to reflect higher sector multiples. (denny.jacob@wsj.com; @pennedbyden)

(END) Dow Jones Newswires

July 18, 2025 12:11 ET (16:11 GMT)

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The analysts expect the challenging environment for home builders to persist in the 2H of the year as they expect lower net price as builders use incentives and price reductions to offset elevated mortgage rates and affordability challenges and finished lot inflation remain a margin headwind, among other factors. They maintain their buy rating on those with attractive valuations or a more built-to-order business like <a href=\"https://laohu8.com/S/MTH\">Meritage Homes</a> or NVR but adjust price objectives on <a href=\"https://laohu8.com/S/DHI\">D.R. Horton</a>, <a href=\"https://laohu8.com/S/LEN\">Lennar</a> and <a href=\"https://laohu8.com/S/KBH\">KB Home</a> to reflect higher sector multiples. (denny.jacob@wsj.com; @pennedbyden) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 18, 2025 12:11 ET (16:11 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BofA Lowers Outlook for Home Builders in Challenging Environment -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBofA Lowers Outlook for Home Builders in Challenging Environment -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-07-19 00:11</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1211 ET - BofA Securities lower their 2025 and 2026 EPS estimates for home builders ahead of 2Q earnings to reflect lower closing volume due to a slowdown in sales/absorption pace and elevated incentives/price reductions. The analysts expect the challenging environment for home builders to persist in the 2H of the year as they expect lower net price as builders use incentives and price reductions to offset elevated mortgage rates and affordability challenges and finished lot inflation remain a margin headwind, among other factors. They maintain their buy rating on those with attractive valuations or a more built-to-order business like <a href=\"https://laohu8.com/S/MTH\">Meritage Homes</a> or NVR but adjust price objectives on <a href=\"https://laohu8.com/S/DHI\">D.R. Horton</a>, <a href=\"https://laohu8.com/S/LEN\">Lennar</a> and <a href=\"https://laohu8.com/S/KBH\">KB Home</a> to reflect higher sector multiples. (denny.jacob@wsj.com; @pennedbyden) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 18, 2025 12:11 ET (16:11 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0314104364.USD","symbol_name":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2552494768","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2552494768","pubTimestamp":1752855060,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1211 ET - BofA Securities lower their 2025 and 2026 EPS estimates for home builders ahead of 2Q earnings to reflect lower closing volume due to a slowdown in sales/absorption pace and elevated incentives/price reductions. The analysts expect the challenging environment for home builders to persist in the 2H of the year as they expect lower net price as builders use incentives and price reductions to offset elevated mortgage rates and affordability challenges and finished lot inflation remain a margin headwind, among other factors. They maintain their buy rating on those with attractive valuations or a more built-to-order business like Meritage Homes or NVR but adjust price objectives on D.R. Horton, Lennar and KB Home to reflect higher sector multiples. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","BK4561":"索罗斯持仓","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","BK4195":"互助储蓄与抵押信贷金融服务","KBH":"KB Home","BK4585":"ETF&股票定投概念","LU2506951875.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) ACC","HBCP":"Home Bancorp Inc","DHI":"霍顿房屋","LU2506952097.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) ACC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","NVR":"NVR Inc","LU0823417737.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC","LU2506951958.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) INC","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU0950375773.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC A","BK4504":"桥水持仓","BK4559":"巴菲特持仓","LEN":"莱纳建筑公司","BK4596":"哈里斯概念","LU2506952170.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) INC","CFA.SI":"NikkoAM-STC Asia REIT","BK4088":"住宅建筑","BK4588":"碎股","MTH":"Meritage Homes Corp","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","BK4211":"区域性银行"},"translate_title":"美国银行在充满挑战的环境中下调房屋建筑商的前景——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CFA.SI":1,"DHI":0.9,"HBCP":1,"KBH":0.9,"LEN":0.9,"MTH":0.9,"NVR":0.9},"content_text":"1211 ET - BofA Securities lower their 2025 and 2026 EPS estimates for home builders ahead of 2Q earnings to reflect lower closing volume due to a slowdown in sales/absorption pace and elevated incentives/price reductions. The analysts expect the challenging environment for home builders to persist in the 2H of the year as they expect lower net price as builders use incentives and price reductions to offset elevated mortgage rates and affordability challenges and finished lot inflation remain a margin headwind, among other factors. They maintain their buy rating on those with attractive valuations or a more built-to-order business like Meritage Homes or NVR but adjust price objectives on D.R. Horton, Lennar and KB Home to reflect higher sector multiples. (denny.jacob@wsj.com; @pennedbyden) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  July 18, 2025 12:11 ET (16:11 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}