- 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.
Fear Among US Investors Is Decreasing, Here’s Why
The CNN Money Fear and Greed index showed further easing in the fear level among US investors.
US stocks moved lower in choppy trading on Thursday as investors monitored several major earnings reports. Although stocks have dropped for two sessions in a row, but the major indices are still up over 2% for the week.
