Forestar Group price target lowered to $37 from $41 at BTIG

BTIG lowered the firm’s price target on Forestar Group to $37 from $41 and keeps a Buy rating on the shares. The company’s Q3 earnings miss was primarily driven by lower unit sales than anticipated, in addition to higher SG&A/sales, slightly lower average pricing, and a higher tax rate than modeled, the analyst tells investors in a research note. While the government approvals for both finished lots and subsequent development have been a headwind that extended cycle times, the past 6 months have shown cycle time stabilization with some markets showing reductions, which should enable a smoother flow of delivery volume, the firm added.