Smith Douglas Homes initiated with a Market Perform at Citizens

Citizens analyst James McCanless initiated coverage of Smith Douglas Homes (SDHC) with a Market Perform rating and no price target The company’s core entry-level customer “remains challenged on the affordability front,” the analyst tells investors in a research note. The firm says Smith’s closings growth has slowed in addition to its returns on equity. As such, Citizens views the shares as fairly valued at current levels.