Evercore analyst Stephen Kim maintains $Tri Pointe Homes (TPH.US)$ with a buy rating, and adjusts the target price from $48 to $50.
According to TipRanks data, the analyst has a success rate of 67.3% and a total average return of 19.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Tri Pointe Homes (TPH.US)$'s main analysts recently are as follows:
Investor sentiments may have been dampened as TRI Pointe revised its FY24 community count forecast downward, now expecting 135-140 communities as opposed to the previously estimated 140-150. The adjustment is linked to swifter than anticipated closings in current communities thus far in the fiscal year. The recent amendment marks the second consecutive quarterly modification in community count projections, potentially contributing to investor exasperation.
The firm points to TRI Pointe's Q3 order shortfall, but observes that gross margins are likely to stay robust until the end of 2024. However, there is an anticipation of some pressure on margins in the first half of 2025 due to an increase in incentives, according to the analyst's note to investors.
TRI Pointe presents an appealing narrative with its strategy for market expansion, emphasis on acquiring land in prime locations, and distinct product offerings. Although the earnings growth forecast for 2025 may not be as strong as that of 2024, projections for mid-single digit growth remain, which could prove to be a cautious estimate.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
