Meritage Homes price target lowered at UBS, top homebuilder pick in 2025

UBS analyst John Lovallo lowered the firm’s price target on Meritage Homes (MTH) to $118 from $126 and keeps a Buy rating on the shares. UBS views the setup for homebuilder stocks in 2025 favorably and believes market sentiment has rapidly shifted towards peak pessimism, which often creates the most attractive buying opportunities for the group, the analyst tells investors in a research note. The firm believes underlying housing fundamentals remain firmly intact and that the public builders are increasingly well-positioned to gain share from smaller, private competitors. Meritage is the firm’s top homebuilder pick in 2025.