Stifel Downgrades Home Builders as Investors Become 'Overly Optimistic' (TOL) (DHI)
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Price: $147.09 +1.36%
Rating Summary:
22 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
22 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Stifel Nicolaus downgraded shares of Toll Bros. (NYSE: TOL) and D.R. Horton (NYSE: DHI) to Sell Wednesday, saying builder valuations look high at this time.
Since the beginning of December, shares of Toll Brothers and D.R. Horton have seen a nice increase. The firm states investors have become "overly optimistic." At this time Stifel recommends waiting for a more attractive entry point.
The firm is encouraging investors to wait on the group as they see new home sales at around 690 thousand for the second half of the decade, which is over double the current 300 thousand rate. During the housing bubble, the new home sales rate was near 1 million homes.
The firm is forecasting aggregate housing demand will be roughly 1.53 million as the household formation rate will reach 1.16 million.
Shares of both TOL and DHI are trading down just over 3 percent on the day.
Since the beginning of December, shares of Toll Brothers and D.R. Horton have seen a nice increase. The firm states investors have become "overly optimistic." At this time Stifel recommends waiting for a more attractive entry point.
The firm is encouraging investors to wait on the group as they see new home sales at around 690 thousand for the second half of the decade, which is over double the current 300 thousand rate. During the housing bubble, the new home sales rate was near 1 million homes.
The firm is forecasting aggregate housing demand will be roughly 1.53 million as the household formation rate will reach 1.16 million.
Shares of both TOL and DHI are trading down just over 3 percent on the day.
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