RBC Capital lowered the firm’s price target on D.R. Horton (DHI) to $145 from $154 and keeps an Underperform rating on the shares. The firm cites the company’s Q4 miss across the metrics, while its Q1 outlook implies “further weakness”, the analyst tells investors in a research note. D.R. Horton’s near-term prospects for little growth, likely further margin pressures, and ROE compressing to just in-line with peers should weigh on the stock’s premium valuation, RBC added.
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