01:17 AM EDT, 06/06/2024 (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 $133, up $7, is 9.5x our FY 24 (Oct.) EPS view of $13.99 (unchanged) and is a discount to the 10.1x 10-year forward P/E average. We acknowledge the affordability headwinds facing consumers when it comes to buying a home. We note mortgage rates have averaged 50 bps ahead of 2023 levels in the first 21 weeks of the year. This has paired with record home values which have risen 47% ahead of March 2020 levels. Decelerating U.S. labor trends have also added to the headwinds, making it hard for consumers to qualify for a mortgage and to save up for a security deposit. Despite a slightly weaker consumer, economic data continues showing resilience, which adds to the higher for longer narrative, in our view. Given most mortgage rates sit below 4%, we project homebuilders will maintain recent market share gains through 2025, even as rates come down. Margin pressure from a speculative build strategy pivot will limit top-line flow through to the bottom line, in our view.