Update shared on08 Aug 2025
Fair value Decreased 23%LGI Homes’ consensus price target has been markedly reduced to $72.33, primarily due to sharply lower revenue growth forecasts and a decline in expected valuation multiples.
What's in the News
- LGI Homes continues to expand with multiple new community openings and product launches across key US markets, including significant offerings in North Carolina, South Carolina, Texas, Florida, Arizona, Nevada, and California.
- The company is rolling out numerous upgraded and diverse floor plans—many featuring its CompleteHome and CompleteHome Plus packages—in both single-family homes and townhomes, targeting various price points for first-time and move-up buyers.
- LGI Homes executed a notable share repurchase program, buying back 1.57% of outstanding shares in the recent quarter, totaling 15.05% repurchased under its long-term buyback authorization.
- Corporate guidance for Q3 2025 projects 1,100–1,300 home closings and approximately 145 active selling communities; however, due to market uncertainties, full-year 2025 guidance has been withdrawn until further notice.
- LGI Homes was dropped as a constituent from multiple Russell growth indexes, which may impact passive fund ownership.
Valuation Changes
Summary of Valuation Changes for LGI Homes
- The Consensus Analyst Price Target has significantly fallen from $94.00 to $72.33.
- The Consensus Revenue Growth forecasts for LGI Homes has significantly fallen from 5.8% per annum to 1.0% per annum.
- The Future P/E for LGI Homes has significantly fallen from 16.88x to 14.67x.
Disclaimer
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