Century Communities price target lowered to $88 from $93 at Wedbush

Wedbush lowered the firm’s price target on Century Communities (CCS) to $88 from $93 and keeps a Neutral rating on the shares. The firm does not see a viable case for any public builder to trade below 1-turns price/tangible book value when national home and land prices are rising. However, Wedbush thinks competitive pressures from larger entry level builders selling for volume over margin may be near term headwinds for Century Communities’ sales pace, gross margin, and stock price. The firm also believes, based on the Q1 call, that Century Communities’ core buyer has been sidelined by a volatile news cycle since Trump’s Liberation Day announcement.