Smith Douglas Homes price target raised to $36 from $30 at BofA

BofA raised the firm’s price target on Smith Douglas Homes to $36 from $30 and keeps a Neutral rating on the shares. Smith Douglas’s Q2 results slightly beat the firm’s forecast, though quarter-do-date orders are a little below normal seasonality, the analyst tells investors in a research note. While BofA is constructive on Smith Douglas’s asset-light model and growth, the firm expects ROE to decline near-term to roughly 25% as it integrates Devon Street and gains scale in new markets.