- JMP Securities analyst Aaron Hecht reiterated a Market Outperform rating on the shares of LGI Homes (NASDAQ:LGIH) with a price target of $130.
- LGIH reported its March home closing numbers, which, combined with previous disclosures, amount to 1,366 home closings during 1Q23, missing the analyst’s estimate by 164 homes.
- The analyst added that guidance for 1Q closings was also missed at the low and high ends of the range by 9 and 108 homes.
- Thus, the analyst has lowered 2023 EPS from $7.48 to $7.31 per share, which reflects 120 fewer home closings.
- Despite the miss, the analyst continues to see buyer demand for homes, given the market’s lack of resale inventory.
- The analyst also believes the miss was small enough in nature to keep LGIH within its 2023 closings guidance range of 6,000 to 7,000 homes.
- The analyst likes the current entry point for LGIH as the market is pricing in lower returns, which will reverse over time.
- Price Action: LGIH shares are trading lower by 0.87% at $111.86 on the last check Wednesday.
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