11:30 AM EDT, 03/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $62, down from $81, is 8.5x our FY 25 (Nov.) EPS view of $7.26. We trim our FY 25 EPS to $7.26 from $8.71 and lower FY 26 EPS to $7.78 from $9.82. Our multiple is a discount to the 10-year forward P/E of 9.1x, reflecting the choppy demand environment and uncertainty around tariff and immigration policy. Our previous thesis that community count growth would offset margin pressure proved optimistic, as FQ1 required strategic price cuts across approximately 50% of communities. While recent sales pace improved, we remain cautious given several headwinds. These include balance sheet constraints versus peers, substantial Q1 land investment ($920M, +57% Y/Y) amid market uncertainty, and potential cost pressures from lumber tariffs and labor constraints. Despite proactive lumber hedging, margin recovery headwinds persist. We recommend holding positions while monitoring execution against revised FY 25 targets of $6.6-$7.0B revenue (-1% Y/Y) and 9.4% operating margin (-170 bps Y/Y).