MTH - Meritage Homes trades in red on UBS price cut amid broader industry challenges

UBS slashed its 2022-2026 new home sales and single-family housing starts forecasts and also a few homebuilder estimates and price targets. It believes that 2023 home sales revenue could decline by 35% on an average amid tight housing supply and supportive demographics. Homebuilder estimates have been cut as amid lower volume forecasts and incremental caution on gross margins, builders incentivize buyers to purchase homes now for avoiding the potential for further affordability erosion. Meritage Homes (NYSE:MTH) price target was lowered to $110 from $156 at the rating agency; of the 11 Wall Street analysts covering the stock, 7 analysts rate it a Hold while 3 have a Strong Buy. In its recent earnings, the company provided FY22 and Q2 outlook: In the past 6-months, the stock lost 42% and is currently trading close to its 52-week low levels; Quant rating on the stock has a Strong Buy.

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Meritage Homes trades in red on UBS price cut amid broader industry challenges