- Possibly spooked by the rout in the bond market and what higher interest rates could mean for homebuilders, Raymond James pulls Outperform ratings and cuts price targets on a wide swath of the sector.
- Ryland Group (NYSE:RYL), Standard Pacific (NYSE:SPG), Pulte Group (NYSE:PHM), M.D.C. Holdings (NYSE:MDC), Lennar (NYSE:LEN), and KB Home (NYSE:KBH) are all cut to Market Perform, while Toll Brothers (NYSE:TOL) is cut to Outperform from Strong Buy. It's unclear if D.R. Horton was similarly downgraded, but its price target is cut to $29 from $31.
- It's been a rough month for the lot of them, with all (excepting M.D.C.) lower by anywhere from 7%-14% as long-term interest rates have shot higher.
- PHM is down 1.2% premarket
- ETFs: ITB, XHB
Homebuilders downgraded across the board at Raymond James
This was corrected on 02/04/2019 at 3:48 PM. Original post stated TOL was cut to Market Perform from Outperform.