BofA lowered the firm’s price target on Smith Douglas Homes (SDHC) to $35 from $40 and keeps a Neutral rating on the shares. Smith Douglas reported Q3 earnings ahead of the firm’s forecast and raised full year 2024 guidance, but provided preliminary 2025 guidance for homes closed with an average selling price that were both below the firm’s forecasts, the analyst tells investors. While constructive on the asset-light model and growth, the firm expects ROE to decline to roughly 25% as Smith Douglas gains scale in new markets.
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Read More on SDHC:
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- Smith Douglas Homes price target raised to $40 from $35 at Wells Fargo
- Smith Douglas Homes price target raised to $40 from $36 at BofA