TRI Pointe downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded TRI Pointe (TPH) to Sector Perform from Outperform with a price target of $37, down from $41. The firm says market headwinds and TRI Pointe’s price versus pace balance lead to a reset in near-term order and revenue expectations. In addition, higher incentives and land costs still pressure the company’s gross margin, the analyst tells investors in a research note. RBC believes these near-term headwinds “create a lack of a clear upside catalyst,” pushing out any return improvement story until 2026.