| Over a week ago | ||||
B. Riley analyst Alex… B. Riley analyst Alex Rygiel raised the firm's price target on Century Communities to $49 from $44 and keeps a Neutral rating on the shares. While he continues to be cautious towards homebuilders heading into Q4 earnings season and 2023 in general, he is adjusting his estimates and price targets across his homebuilder coverage. | ||||
| Over a month ago | ||||
Stable or declining… Stable or declining mortgage rates should support owning homebuilder stocks in 2023, while a rising or volatile rate environment "may result in underperformance versus the market," Wedbush analyst Jay McCanless tells investors in a research note. Wedbush does not have a formal rate call, but is assuming a favorable rate environment in 2023 should support owning "affordable builders that can deliver homes in a timely fashion," says the analyst. He believes Outperform-rated Cavco Industries (CVCO), Skyline Champion (SKY), D.R. Horton (DHI) and Century Communities (CCS) are builders "that fit that description." McCanless likes spec builders, saying they have the ability to dial supply up and down depending on local market demand, providing a higher level of operating flexibility than the to be built operators. | ||||
Virtual Meetings to be… Virtual Meetings to be held on December 5-6 hosted by BTIG. | ||||
Virtual Meetings to be… Virtual Meetings to be held on December 5-6 hosted by BTIG. | ||||
BTIG analyst Carl… BTIG analyst Carl Reichardt initiated coverage of Century Communities with a Neutral rating. The analyst is positive on the company's focus, which is low-end spec homes in the southeast and southwest, also stating that he "especially likes" the "Century Complete" concentrating on "very affordable" product built in less competitive ex-urban locations and also with a presence in Midwestern and Southeastern states not yet dominate by larger peers. Reichardt warns however that higher mortgage rates and aggressive pricing have hurt Century Communities', with supply chain challenges also leaving the company short of ready-to-occupy homes. | ||||
Virtual Meetings to be… Virtual Meetings to be held on December 5-6 hosted by BTIG. | ||||
JPMorgan analyst Michael… JPMorgan analyst Michael Rehaut double downgraded Century Communities to Underweight from Overweight with a price target of $48, up from $47.50. Approaching 2023, the analyst is moving to a positive sector stance on the homebuilders. The stocks are already pricing in a mild recession and currently offer a favorable risk/reward, Rehaut tells investors in a research note. To the extent that the Federal Reserve tightening cycle ends in the first half of 2023, this would likely prove to be a "significant positive catalyst for the group," says the analyst. He cites valuation for the double downgrade of Century Communities. | ||||
| Over a quarter ago | ||||
Century Communities is… Century Communities is down -12.0%, or -$5.66 to $41.37. | ||||
B. Riley analyst Alex… B. Riley analyst Alex Rygiel downgraded Century Communities to Neutral from Buy with a price target of $44, down from $54. The company's Q3 financial results were mixed with modestly better home sales revenue and lower adjusted EBITDA, Rygiel tells investors in a research note. However, net new orders were significantly below estimates and were down 52% year-over-year and down 40% versus Q2 on notably higher cancellations, says the analyst. He anticipates "further and meaningful" gross margin deterioration near-term as management moves inventory. Rygiel downgrades Century Communities "until the housing market stabilizes and we have greater visibility." | ||||
B. Riley analyst Alex… B. Riley analyst Alex Rygiel downgraded Century Communities to Neutral from Buy with a price target of $44, down from $54. | ||||
