Why BofA Downgrades Homebuilders Owens Corning, Dream Finders Homes
Why BofA Downgrades Homebuilders Owens Corning, Dream Finders Homes
New home demand has deteriorated over the past few weeks due to the spike in mortgage rates, a sharp decline in consumer confidence and the weaker economic growth outlook, according to BofA Securities.
BofA On Owens Corning
Analyst Rafe Jadrosich downgraded the rating for Owens Corning (NYSE:OC) from Buy to Underperform, while reducing the price target from $119 to $80.
The company has "relatively high new construction exposure," estimated at more than a third of insulation and 20% of roofing, the analyst wrote in the note.
"In insulation, we now expect volume to decline ~10% YoY in 2023 and margins to compress. Composites could slow in 2023 with weaker industrial demand," he added. Jadrosich further mentioned there seems to be a limited upside to roofing, with "margins and sales likely near peak levels."
BofA On Dream Finders Homes
Analyst Jadrosich downgraded the rating for Dream Finders Homes Inc (NASDAQ:DFH) from Neutral to Underperform, while reducing the price target from $18 to $ $10.50.
The backdrop for Dream Finders Homes is more challenging than for other builders, the BofA analyst said in the note. He explained that the company has "high exposure to entry-level homebuyers," higher financial leverage than peers and "a significant portion of DFH's optioned land (estimate >40%) was contracted in the last year at potentially elevated land prices."
OC, DFH Price Action: Owens Corning's stock had declined by 2.03% to $74.64, while shares of Dream Finders Homes had declined by 9.48% to $10.70 at the time of publication Friday.
Photo: Kanjana Kawfang via Shutterstock
New home demand has deteriorated over the past few weeks due to the spike in mortgage rates, a sharp decline in consumer confidence and the weaker economic growth outlook, according to BofA Securities.
根据美国银行证券的数据，过去几周，由于抵押贷款利率飙升、消费者信心大幅下降以及经济增长前景疲软，新屋需求有所恶化。
BofA On Owens Corning
美国银行对欧文斯·康宁的看法
Analyst Rafe Jadrosich downgraded the rating for Owens Corning (NYSE:OC) from Buy to Underperform, while reducing the price target from $119 to $80.
分析师Rafe Jadrosich下调了对欧文斯·康宁(纽约证券交易所股票代码：OC)从Buy到UnderPerformance，同时将目标价从119美元下调至80美元。
The company has "relatively high new construction exposure," estimated at more than a third of insulation and 20% of roofing, the analyst wrote in the note.
这位分析师在报告中写道，该公司的新建筑风险敞口相对较高，估计超过三分之一的隔热材料和20%的屋顶。
"In insulation, we now expect volume to decline ~10% YoY in 2023 and margins to compress. Composites could slow in 2023 with weaker industrial demand," he added. Jadrosich further mentioned there seems to be a limited upside to roofing, with "margins and sales likely near peak levels."
“在绝缘领域，我们现在预计2023年销量同比下降约10%，利润率将压缩。随着工业需求减弱，复合材料可能会在2023年放缓，”他补充道。Jadrosich进一步提到，屋顶似乎有有限的上行空间，“利润率和销售额可能接近峰值水平。”
BofA On Dream Finders Homes
美国银行谈寻梦者之家
Analyst Jadrosich downgraded the rating for Dream Finders Homes Inc (NASDAQ:DFH) from Neutral to Underperform, while reducing the price target from $18 to $ $10.50.
分析师Jadrosich下调了对寻梦者之家公司纳斯达克(Sequoia Capital：DFH)从中性下调至表现不佳，同时将目标价从18美元下调至10.5美元。
The backdrop for Dream Finders Homes is more challenging than for other builders, the BofA analyst said in the note. He explained that the company has "high exposure to entry-level homebuyers," higher financial leverage than peers and "a significant portion of DFH's optioned land (estimate >40%) was contracted in the last year at potentially elevated land prices."
这位美银分析师在报告中表示，与其他建筑商相比，Dream Finders住宅的背景更具挑战性。他解释说，该公司对入门级购房者的风险敞口很高，财务杠杆比同行更高，而且在过去一年中，很大一部分(估计超过40%)的可选土地是以潜在的高地价签约的。
OC, DFH Price Action: Owens Corning's stock had declined by 2.03% to $74.64, while shares of Dream Finders Homes had declined by 9.48% to $10.70 at the time of publication Friday.
项目主管、东方红价格行动：欧文斯·康宁的股价下跌了2.03%，至74.64美元，而Dream Finders Home的股价在周五发表时下跌了9.48%，至10.70美元。
Photo: Kanjana Kawfang via Shutterstock
图片：Kanjana Kawfang通过Shutterstock
译文内容由第三方软件翻译。
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