DR Horton (DHI) Receives a Buy from Barclays

By Carrie Williams

In a report issued on March 15, Matthew Bouley from Barclays maintained a Buy rating on DR Horton (DHIResearch Report), with a price target of $41. The company’s shares opened today at $40.46.

Bouley commented:

“We had the opportunity to meet with Bill Wheat (CFO) and Jessica Hansen (IR) at DHI headquarters yesterday, as well as tour Express community Trinity Oaks. We came away from meetings confident in DHI’s ability to: 1) outgrow peers this year; 2) improve gross margins following near-term choppiness; and 3) generate peer- leading returns supported by prudent capital allocation. Positioned for growth with focus on returns: We sensed an ongoing push to outgrow a still-uncertain housing market. This is supported in the near-term by a strong spec position to enter the Spring coupled with DHI’s attractive and needed affordable product offering, and in the medium term by adjusting DHI’s versatile brands to market demand. Despite the push for share, operators are ultimately incentivized by both profit and returns which drives an optimal return-focused balance between price and pace.”

According to TipRanks.com, Bouley is a 1-star analyst with an average return of -1.9% and a 40.8% success rate. Bouley covers the Industrial Goods sector, focusing on stocks such as Continental Building Products, Builders Firstsource, and BMC Stock Holdings.

Currently, the analyst consensus on DR Horton is a Moderate Buy with an average price target of $42.39.

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Based on DR Horton’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $3.52 billion and net profit of $287 million. In comparison, last year the company had a net profit of $189 million.

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D.R. Horton, Inc. operates as a national homebuilder that engages in the construction and sale of single-family housing. It operates through the Homebuilding and Financial Services segments. The Homebuilding segment includes the sub-segments East, Midwest, Southeast, South Central, Southwest, and West regions.