US homebuilders rise after Fed rate cut
Updates
** Shares of U.S. homebuilders rise in early tradeafter Federal Reserve cuts interest rate by half a percentage point
** D R Horton DHI.N up 1% at $196, KB Home KBH.N up 2% at $88, Lennar LEN.N up 1% at $190, Pultegroup PHM.N up 1% at $142 and Toll Brothers TOL.N up 1% at $152 in early trade
** Bank of America raises price targets on U.S. homebuilders as it expects housing demand to improve with lower mortgage rates
** Brokerage raises PT by an average of 11% to reflect greater confidence in higher equity returns into 2025 following the significant decline in mortgage rates over the last two months
** YTD, DHI up 27%, KBH up 38%, LEN up 26%, PHM up 36% and TOL up 46%, up to last close
Company | New PT | Old PT |
DR Horton | $215 | $196 |
KB Home | $90 | $75 |
Lennar | $190 | $171 |
Pultegroup | $160 | $138 |
Toll Brothers | $165 | $160 |
Reporting by Anshuman Tripathy in Bengaluru
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