Forestar Group (FOR, Financial) has revised its guidance for fiscal 2025, citing challenging market conditions such as home affordability issues and decreasing consumer confidence. The company's new projection anticipates generating between $1.5 billion and $1.55 billion in revenue, a decrease from its earlier forecast of $1.6 billion to $1.65 billion.
The number of lots expected to be delivered has also been adjusted downward. Forestar now aims to deliver between 15,000 and 15,500 lots, compared to the previous estimate of 16,000 to 16,500 lots. Despite these revisions, Forestar highlights its robust balance sheet and liquidity, which it believes will enable the company to navigate the current market uncertainties effectively.
The company attributes its stable position to a strategic partnership with D.R. Horton and holds $2.3 billion in contracted future revenue, which it expects will help it maintain and grow its market share. Forestar plans to continue its disciplined capital allocation strategy while focusing on long-term shareholder value and growth opportunities in the homebuilding sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Forestar Group Inc (FOR, Financial) is $34.33 with a high estimate of $40.00 and a low estimate of $31.00. The average target implies an upside of 80.32% from the current price of $19.04. More detailed estimate data can be found on the Forestar Group Inc (FOR) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Forestar Group Inc's (FOR, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Forestar Group Inc (FOR, Financial) in one year is $30.25, suggesting a upside of 58.88% from the current price of $19.04. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Forestar Group Inc (FOR) Summary page.
