Hovnanian price target lowered to $120 from $155 at Wedbush

Wedbush analyst Jay McCanless lowered the firm’s price target on Hovnanian (HOV) to $120 from $155 and keeps a Neutral rating on the shares. The firm believes its prior assumptions about the potential profitability of the core business and of the potential income from Hovnanian’s joint venture structures were both too aggressive in hindsight. As a result, Wedbush is resetting its FY25 profitability assumptions to be more in line with Q1 2025’s results rather than the improvement it previously expected over FY24. The firm was encouraged to hear Hovnanian is raising prices along the eastern seaboard in approximately 40% of communities during the quarter.