BTIG has revised its price target for Forestar Group (FOR, Financial), lowering it from $36 to $29, while maintaining a Buy rating on the company's shares. The adjustment follows a mix of positive and concerning developments from Forestar's recent performance and future outlook.
In the company's second quarter, Forestar reported strong lot sales volume and managed to keep selling, general, and administrative expenses lower relative to sales. Additionally, a reduced tax rate contributed positively to the quarterly beat. However, these gains were partly counteracted by a decline in the average revenue per lot.
Looking ahead, Forestar's fiscal year 2025 guidance has been revised downward, with a 6% reduction in expected lot volume and revenue at their midpoints compared to earlier projections. This tempered outlook has influenced the lowered price target, as the company adjusts its future expectations.
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 $33.00 with a high estimate of $36.00 and a low estimate of $31.00. The average target implies an upside of 74.33% from the current price of $18.93. 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 $30.28, suggesting a upside of 59.96% from the current price of $18.93. 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.
