Topeka Capital announced that they have initiated coverage of home building company, D.R. Horton, Inc.(DHI) on Friday.
The firm reported that they have began coverage of DHI with a “Hold” rating, and a price target of $18. This price target suggests a slight decline from the stock’s current price of $18.66.
An analyst from the firm commented, “year-to-date, D.R. Horton’s share price is up approximately 50.0% versus an average 110.0% return for the rest of our homebuilder coverage and a 12.1% return for the S&P 500. If the fiscal cliff, QM, and QRM are resolved favorably for housing demand, we believe our concerns about entry-level buyers (approximately 50.0% of DHI’s customers) access to mortgage financing would be resolved. At current levels, we believe this positive headline risk is reflected, and we would stay to the side.”
D.R. Horton shares were mostly flat during premarket trading Friday. The stock is up 48% YTD.
The Bottom Line
Shares of D.R. Horton (DHI) have a .80% dividend yield, based on last night’s closing stock price of $18.69. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $20-$22 price levels.
D.R. Horton, Inc.(DHI)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.