M/I Homes price target lowered to $168 from $210 at Raymond James

Raymond James analyst Buck Horne lowered the firm’s price target on M/I Homes (MHO) to $168 from $210 and keeps a Strong Buy rating on the shares. The firm says shares offer one of the most compelling risk/reward equations in the homebuilding sector. M/I Homes can still comfortably generate a high-teens return on invested capital with a net debt-free balance sheet while trading at 1.1x forward book value even after fully accounting for more than 200 basis points of increased year over year gross margin pressure the firm envisions in a “higher for longer” 7%+ mortgage rate scenario for all of FY25, the analyst tells investors in a research note.