Wells Fargo Revises Ratings On These Homebuilders - Read Why
Wells Fargo analyst Deepa Raghavan changed homebuilder estimates, ratings, and price targets. According to the analyst, fundamental housing data will continue to deteriorate steadily from here, feeding negative investor sentiment. She seeks to estimate how far stocks can fall based on perceived risk. Raghavan notes that proprietary housing market checks in May confirmed the April housing inflection. The slowdown was more noticeable at the value end of the chain and is gradually spreading. Given the enormous spike in interest rates YTD, the analyst added, the home market downturn is arriving sooner than many expected. The rating modifications are based on a combination of downcycling scenarios study issued by Wells Fargo since March on recession analysis, normalized earnings scenarios, and balance sheet stress tests. M.D.C. Holdings, Inc. (NYSE: MDC ) has been downgraded to Underweight from Equal-Weight with a price target was $27 (a downside of 5%). The analyst lowered 2023 estimates for MDC by 28% vs. prior …
Wells Fargo Revises Ratings On These Homebuilders - Read Why
Wells Fargo analyst Deepa Raghavan changed homebuilder estimates, ratings, and price targets. According to the analyst, fundamental housing data will continue to deteriorate steadily from here, feeding negative investor sentiment. She seeks to estimate how far stocks can fall based on perceived risk. Raghavan notes that proprietary housing market checks in May confirmed the April housing inflection. The slowdown was more noticeable at the value end of the chain and is gradually spreading. Given the enormous spike in interest rates YTD, the analyst added, the home market downturn is arriving sooner than many expected. The rating modifications are based on a combination of downcycling scenarios study issued by Wells Fargo since March on recession analysis, normalized earnings scenarios, and balance sheet stress tests. M.D.C. Holdings, Inc. (NYSE: MDC ) has been downgraded to Underweight from Equal-Weight with a price target was $27 (a downside of 5%). The analyst lowered 2023 estimates for MDC by 28% vs. prior …