BTIG analyst Carl Reichardt has maintained their neutral stance on MTH stock, giving a Hold rating yesterday.
Carl Reichardt has given his Hold rating due to a combination of factors impacting Meritage’s performance. Despite a strong first quarter with earnings surpassing expectations, the company faces challenges in sustaining its sales pace amid a softer demand environment. The company’s strategic shift towards move-in ready homes has improved backlog conversions, yet there are concerns about the necessary incentives and margins to maintain this momentum.
Additionally, while Meritage has maintained its delivery and revenue guidance, the macroeconomic uncertainties and timing of new store openings remain areas of caution. The company’s valuation at 0.98 times book value per share also suggests a balanced risk-reward scenario, leading to the decision to maintain a Neutral rating. Overall, while there are positive indicators, the potential for margin compression and market volatility justifies the Hold recommendation.
In another report released yesterday, Wedbush also maintained a Hold rating on the stock with a $103.00 price target.
MTH’s price has also changed dramatically for the past six months – from $185.430 to $68.920, which is a -62.83% drop .