Update shared on03 Sep 2025
Fair value Increased 2.31%D.R. Horton's analyst price target was raised to $161.60, reflecting heightened investor optimism on rate cuts, sector-wide valuation uplift, and recent earnings outperformance.
Analyst Commentary
- Bullish analysts cite increasing investor optimism regarding future interest rate cuts, which is boosting valuations in the homebuilding sector.
- Generalist investors are demonstrating increased interest and conducting further due diligence on homebuilder stocks, contributing to upward price movements.
- A sector-wide re-rating and higher valuations across homebuilders have led to adjusted, higher price targets for D.R. Horton.
- D.R. Horton's recent quarterly results significantly outperformed consensus estimates for EPS and gross margin, sparking a positive reaction in the stock and industry peers.
- Company guidance indicates that sales incentives in the current quarter remain within expected ranges, supporting confidence in forward earnings and margins.
What's in the News
- Issued Q4 consolidated revenue guidance of $9.1 billion to $9.6 billion, with expected home sales gross margin between 21% and 21.5%.
- Issued FY25 consolidated revenue guidance of $33.7 billion to $34.2 billion.
- Completed repurchase of 8,265,453 shares (2.68% of outstanding), totaling $1.02 billion, under announced buyback.
Valuation Changes
Summary of Valuation Changes for D.R. Horton
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $158.93 to $161.60.
- The Consensus Revenue Growth forecasts for D.R. Horton remained effectively unchanged, moving only marginally from 6.1% per annum to 6.2% per annum.
- The Future P/E for D.R. Horton remained effectively unchanged, moving only marginally from 10.29x to 10.40x.
Disclaimer
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