Smith Douglas Homes price target lowered to $16 from $21 at RBC Capital

RBC Capital analyst Mike Dahl lowered the firm’s price target on Smith Douglas Homes (SDHC) to $16 from $21 and keeps a Sector Perform rating on the shares. The firm is modeling a weaker macro backdrop while citing the management’s continued focus on maintaining pace over price by using incentives to drive volumes, the analyst tells investors in a research note. Smith Douglas’s asset light model remains attractive in the long-term, but the firm expects continued volatility in the stock given near-term macro and earnings headwinds with limited near-term catalysts ahead, RBC added.