- D.R. Horton (NYSE:DHI) cut to market perform by KBW analyst Jade Rahmani as the stock's 34% YTD rally brings valuation near KBW's price target.
- DHI slips 0.5% in premarket trading.
- Shares trade at higher multiple than peers ans also outperformed the S&P 1500 Homebuilders Index 30% gain and S&P 500's 16% increase YTD.
- Sees "choppy spring selling season" and notes operating margins may underperform expectations in H2 as mix tilts toward lower-margin entry-level product.
- KBW recommends Lennar (NYSE:LEN), rated outperform, on relative valuation discount.
- Analyst ratings.
- Previously: D.R. Horton, Lennar cut to neutral as gains already posted (April 17)