BofA Securities Starts Meritage Homes (MTH) at Buy

BofA Securities analyst Refe Jadrosich initiates coverage on Meritage Homes (NYSE: MTH) with a Buy rating and a price target of $82.00.

The analyst comments "We initiate coverage on Meritage Homes (MTH) at Buy with price objective of $82 (19% upside) based on 1.1X forward price-to-book. We view MTH as a strong operator that has consistently gained share over the last decade. We also think valuation is attractive with MTH trading <1x price-to-book. Risks: full year delivery guidance implies 2H rampup, high mortgage rates, soft housing demand, rising land prices, and tariff uncertainty. Attractive valuation; <1x book usually a good entry point Meritage trades at 0.9X price-to-book, which is the low-end of its historical range despite MTH’s improved balance sheet, higher margins, and better scale. <1x book has historically been a good entry point for MTH shares (see Exhibit 1). While we are not bullish on near-term housing demand (see report: Spring in bloom but housing hasn’t thawed), we think MTH’s valuation already reflects the weaker housing backdrop."

For an analyst ratings summary and ratings history on Meritage Homes click here. For more ratings news on Meritage Homes click here.

Shares of Meritage Homes closed at $68.68 yesterday.

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