D.R. Horton (DHI) PT Lowered to $185 at Citi

Citi analyst Anthony Pettinari lowered the price target on D.R. Horton (NYSE: DHI) to $185.00 (from $186.00) while maintaining a Neutral rating.

The analyst comments "DHI shares fell -7% following a F4Q miss and disappointing FY ’25 guide. F4Q GM dipped -40bp Q/Q on elevated price incentives, which are expected to continue rising in F1Q (GM guided down an additional -110bp Q/Q). Despite higher incentives (FY ’25 net pricing guided flat Y/Y), FY ’25 vol expectations (+0-3% Y/Y) are below the ~10% LT growth target and peers’ +5-10% preliminary ’25 outlooks. Positively, DHI is returning cash through dividends (+33% in F4Q) & repurchases (guided +34% Y/Y to $2.4B in ’25). We lower our FY ’25-’26 est. (’25 -$2.55, ’26 -$2.40) to reflect F4Q results and an updated price/vol outlook for ’25. Applying a 2.2x NTM TBV multiple to updated est. our target moves to $185; we remain Neutral given some pricing risk into the ’25 spring selling season."

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