Meritage Homes Earnings Analysis: We See An Upside
Summary
- Meritage Homes recently reported mixed Q4 results with EPS beating the consensus estimates while revenues missed slightly.
- While absorption is expected to decline with rising interest rates, we should still see very healthy earnings over the next couple of years.
- Even if we assume the stock trades at a conservative 1.1x P/TBV multiple by FY2023 end, we still get mid teens CAGR over the next two years.
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