Meritage Homes: B of A Securities raises PT to $85 from $79.
ByAinvest
Thursday, Sep 18, 2025 12:16 pm ET1min read
MTH--
Current Market Context
Meritage Homes, a leading U.S. homebuilder, has seen its stock price fluctuate in recent months. As of the latest update, the stock is trading at $75.46, reflecting a decline of 1.11% from its pre-market price of $77.03. The stock has been influenced by various factors, including interest rate cuts, trade tariffs, and company-specific announcements [1].
Analyst Insights
The revision in the price target by B of A Securities comes amidst a broader trend of positive sentiment towards the U.S. homebuilding sector. The Federal Reserve's latest interest rate cuts are expected to have a limited impact on the housing market trajectory, which is a positive sign for homebuilders like Meritage Homes [1].
Recent Company Announcements
Meritage Homes has been active in recent quarters, announcing dividends and share buybacks. The company declared a quarterly dividend of $0.43 per share, with a buyback of $500 million. Additionally, company executives, including Director Dennis V. Arriola and Executive Vice President Malissia Clinton, have been actively buying and selling shares, indicating confidence in the company's future prospects [^1, 2].
Financial Metrics
Meritage Homes reported earnings for the second quarter of 2025, with EPS of $2.04, beating the forecast of $1.98. The company also reported revenue of $1.61 billion, exceeding the estimate of $1.59 billion. Despite these positive earnings, the stock experienced a 6.02% decline after hours, likely due to concerns over the company's debt-to-capital ratio and the impact of recent tariffs [1].
Looking Ahead
The revised price target by B of A Securities suggests a bullish outlook on Meritage Homes' future performance. With the company projecting double-digit community count growth through 2025-2026, investors are encouraged to monitor the stock's performance closely. The company's strong financial metrics, including a gross profit margin of 22.9% and a return on equity of 12.6%, indicate a robust business model [1].
Conclusion
The upward revision in the price target for Meritage Homes by B of A Securities is a notable development for the homebuilding sector. Investors should consider the broader market context and the company's recent announcements when evaluating this stock. As always, thorough analysis and due diligence are recommended before making investment decisions.
References
[1] https://www.investing.com/equities/meritage-homes-corp
https://www.investing.com/equities/meritage-homes-corp
Meritage Homes: B of A Securities raises PT to $85 from $79.
September 12, 2025 - In a significant move, Bank of America Securities has revised its price target for Meritage Homes Corporation (MTH) upwards to $85, from the previous target of $79. This positive adjustment reflects recent developments and market conditions affecting the homebuilding sector [1].Current Market Context
Meritage Homes, a leading U.S. homebuilder, has seen its stock price fluctuate in recent months. As of the latest update, the stock is trading at $75.46, reflecting a decline of 1.11% from its pre-market price of $77.03. The stock has been influenced by various factors, including interest rate cuts, trade tariffs, and company-specific announcements [1].
Analyst Insights
The revision in the price target by B of A Securities comes amidst a broader trend of positive sentiment towards the U.S. homebuilding sector. The Federal Reserve's latest interest rate cuts are expected to have a limited impact on the housing market trajectory, which is a positive sign for homebuilders like Meritage Homes [1].
Recent Company Announcements
Meritage Homes has been active in recent quarters, announcing dividends and share buybacks. The company declared a quarterly dividend of $0.43 per share, with a buyback of $500 million. Additionally, company executives, including Director Dennis V. Arriola and Executive Vice President Malissia Clinton, have been actively buying and selling shares, indicating confidence in the company's future prospects [^1, 2].
Financial Metrics
Meritage Homes reported earnings for the second quarter of 2025, with EPS of $2.04, beating the forecast of $1.98. The company also reported revenue of $1.61 billion, exceeding the estimate of $1.59 billion. Despite these positive earnings, the stock experienced a 6.02% decline after hours, likely due to concerns over the company's debt-to-capital ratio and the impact of recent tariffs [1].
Looking Ahead
The revised price target by B of A Securities suggests a bullish outlook on Meritage Homes' future performance. With the company projecting double-digit community count growth through 2025-2026, investors are encouraged to monitor the stock's performance closely. The company's strong financial metrics, including a gross profit margin of 22.9% and a return on equity of 12.6%, indicate a robust business model [1].
Conclusion
The upward revision in the price target for Meritage Homes by B of A Securities is a notable development for the homebuilding sector. Investors should consider the broader market context and the company's recent announcements when evaluating this stock. As always, thorough analysis and due diligence are recommended before making investment decisions.
References
[1] https://www.investing.com/equities/meritage-homes-corp
https://www.investing.com/equities/meritage-homes-corp
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