Smith Douglas Homes initiated with a Neutral at BTIG

BTIG initiated coverage of Smith Douglas Homes (SDHC) with a Neutral rating. The company offers affordable products targeting entry level and empty nest buyers, with an average selling price in the $330-340K range, and the new market entry has overweighted smaller Southeast markets which feature less competition from the other public builders compared to top markets, the analyst tells investors in a research note. Balanced against the positive attributes however are a tough macro environment and an operating model that requires consistent production volume, the firm added.