Homebuilders are increasing incentives just as they did before the COVID-19 pandemic to entice potential buyers of newly constructed homes amid slowing sales.
These factors include rising mortgage rates, increased pricing and shifting consumer perception.
RBC Capital analyst Mike Dahl downgrades Taylor Morrison Home (NYSE:TMHC) from Outperform to Sector Perform and raises the price target from $28 to $29.
Taylor Morrison Home (NYSE:TMHC) reported quarterly earnings of $2.27 per share which beat the analyst consensus estimate of $1.84 by 23.37 percent. This is a 138.95 percent increase over earnings of $0.95 per share from
RBC Capital analyst Mike Dahl further reduces estimates and price targets for Homebuilders & Building Products companies as housing demand declines.
The analyst expects further deterioration after the most recent jump in rates (+50 bps past 2 weeks and +270 bps YTD).