Smith Douglas Homes price target raised to $40 from $36 at BofA

BofA raised the firm’s price target on Smith Douglas Homes to $40 from $36 and keeps a Neutral rating on the shares. After the Fed cut its key rate by 50 basis points yesterday, homebuilder stocks rallied initially, but closed the day flattish, notes the analyst, who believe homebuilder stocks and mortgage rates already anticipated rate cuts following the rally in recent months. The firm raised its price targets for homebuilder stocks by an average of 11% to reflect greater confidence in higher ROE into 2025 following the significant decline in mortgage rates over the last two months, BofA noted.