LSEA - Taylor Morrison Tri Pointe Homes Green Brick cut at B. Riley on rising rates

B. Riley analyst Alex Rygiel downgrades Taylor Morrison Home (NYSE:TMHC), Tri Pointe Homes (NYSE:TPH), and Green Brick Partners (NYSE:GRBK) to Neutral from Buy on the expected impact of higher interest rates on new home starts and the potential for gross margin pressure in 2023. The actions come after the Federal Reserve raised the federal funds rate target range by 75 basis points to 1.50%-1.75%, and indicated it could boost it by the same amount in July. Tri Pointe (TPH) is sliding 5.3% and Green Brick (GRBK) stock is falling 3.9% in Thursday premarket trading. "Despite some fairly positive macro tailwinds for the homebuilding industry, and expectation for mostly strong CY2Q22 financial results, we believe interest rates matter more to investors in valuing the homebuilders," the analyst wrote Thursday in a note to clients. Rygiel lowered his estimate for new home starts to 1.6M, or up 1.3% from 2021. That compares

For further details see:

Taylor Morrison, Tri Pointe Homes, Green Brick cut at B. Riley on rising rates