TRI Pointe price target raised to $36 from $30 at Wedbush

Wedbush analyst Jay McCanless raised the firm’s price target on TRI Pointe to $36 from $30 and keeps an Outperform rating on the shares. The firm believes TRI Pointe’s average price will be moving lower over the next 6 quarters as the company shifts away from higher priced markets in California. Wedbush anticipates TRI Pointe’s shift to lower price markets focused on more entry level than move up product may provide volume leverage to the income statement. However, in a rising input cost environment which now includes lumber inflation, the firm thinks the volume impact on gross margin may be positive year-over-year into FY24 but in a muted fashion.