D.R. Horton price target lowered to $171 from $186 at BTIG

BTIG lowered the firm’s price target on D.R. Horton (DHI) to $171 from $186 and keeps a Buy rating on the shares. The company’s Q1 earnings topped consensus estimates with stronger deliveries, higher gross margins, and a lower tax rate than modeled being offset by a higher SG&A to sales than anticipated, the analyst tells investors in a research note. BTIG adds however that its FY25 EPS view goes to $14.25 from $15.50 primarily on lower order growth and lower margins while FY26E drops to $16.60 from $17.25 on lower operating margins, also noting that while unit demand appears passable, conditions are competitive and pricing power thin.