RBC Capital has revised its price target for D.R. Horton (DHI, Financial) shares, reducing it from $125 to $105, while maintaining an "Underperform" rating. This adjustment follows a significant miss in the company's second-quarter order expectations and a decreased forecast for deliveries in fiscal year 2025.
Despite the third-quarter gross margin guidance surpassing expectations, RBC Capital remains cautious about the general outlook, suggesting a potential downward trend. They highlighted ongoing challenges such as rising incentives, volatile interest rates, and macroeconomic uncertainties. Additionally, the firm noted that looming cost pressures and potential consumer weaknesses could impact the homebuilding giant moving forward.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for D.R. Horton Inc (DHI, Financial) is $156.08 with a high estimate of $220.00 and a low estimate of $105.00. The average target implies an upside of 30.85% from the current price of $119.28. More detailed estimate data can be found on the D.R. Horton Inc (DHI) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, D.R. Horton Inc's (DHI, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" 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 D.R. Horton Inc (DHI, Financial) in one year is $135.82, suggesting a upside of 13.87% from the current price of $119.28. 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 D.R. Horton Inc (DHI) Summary page.
