TPH - A homebuilder with 68% upside looks good after another healthy profit - Evercore

One homebuilder's healthy profitability in Q2 has led to a new Street-high price target from Evercore ISI, which lauds "yet another impressive quarter." Tri Pointe Homes (TPH) logged record home sale revenue as well as all-time highs in pretax profit and backlog - and it's expecting to open about 70 new communities this year to end 2021 with 120-130 active selling communities. Gross margins after capitalized interest grew by 280 basis points from last year, 160 bps better than the high end of guidance. And the company surprised on net orders, which grew by 22% vs. Evercore's expectations for 10%. That's a contrast to [[NVR]] and D.R. Horton (DHI), even with intentionally limiting sales during the quarter, Evercore points out. While absorptions decelerated during the quarter (4.1x in June vs. May's 4.8x and April's 5.2x), that came during some intentionally metered sales pace. The company expects that dynamic to continue

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A homebuilder with 68% upside looks good after another healthy profit - Evercore