Intel stock spikes after report of possible US government stake
Investing.com - JMP Securities initiated coverage on Forestar Group (NYSE:FOR) with a Market Outperform rating and a price target of $30.00, according to a research note released Tuesday. The company, currently trading at $22.36, has shown strong momentum with returns of 6% over the past week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.
The firm believes the market is not fully appreciating the upside potential in the stock of the Arlington, Texas-based company, which is the largest pure-play residential development company in the United States. This view is supported by the company’s attractive valuation metrics, trading at a P/E ratio of 6.74 and price-to-book ratio of 0.69.
JMP Securities suggests this is an opportune time for exposure to land developers as the industry benefits from a positive mix-shift toward off-balance sheet land financing.
The research note points out that Forestar Group is majority owned by DR Horton (NYSE:DHI), the largest homebuilder in the U.S. by volume, which has a vested interest in scaling the business to make a meaningful impact on its operations.
The $30 price target represents a multiple of 0.9 times forward twelve-month book value, with JMP recommending investors initiate positions in the stock at current levels.
In other recent news, Forestar Group reported its fiscal second-quarter earnings, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.62, which was below the expected $0.67, and revenue of $351 million, falling short of the forecasted $386.14 million. Despite these figures, Forestar did see a 5% year-over-year revenue increase. BTIG analyst Ryan Gilbert responded by lowering the price target for Forestar Group shares from $36 to $29, while maintaining a Buy rating, citing a tempered outlook due to the earnings report. The company also adjusted its fiscal year 2025 guidance, reducing lot volume and revenue projections by 6% at their midpoints. D.R. Horton, a major customer, has reduced its FY25 delivery projection by 5.5% at the midpoint, although it anticipates an increase in housing starts later in 2025. Meanwhile, Brookfield Renewable Partners (NYSE:BEP) has filed its executive compensation report with the U.S. Securities and Exchange Commission, providing transparency into its executive pay structure. The filing was signed by the company’s president, James Bodi, confirming compliance with regulatory requirements.
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