-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We maintain our 12-month target price of $110, 11x our 2026 EPS view of $10.04. Our forward P/E is a premium to the historical average, a valuation justified by its diversification, scale, and the U.S. housing shortage. We revise our 2026 EPS to $10.04 from $10.46 and 2027 EPS to $11.21 from $11.84. While PHM's strategic pivot back to a build-to-order model aims for higher margins, we see a near-term contraction in market share and unit volume that the market is underestimating. This could be further challenged by competition for premium lots, which could drive up land costs and erode benefits the BTO model is intended to capture. Consequently, we view revenue expectations in 2027 to be too optimistic compared to what its BTO model has been able to deliver and may require downward margin revision. With shares appearing to have priced in the long-term housing shortage narrative, we believe investors are overlooking execution risks, making the current risk/reward profile unfavorable.