Moody’s downgrades Senegal to Caa1 amid rising debt concerns
Investing.com - Texas Capital Securities upgraded LGI Homes (NASDAQ:LGIH) from Hold to Buy while maintaining its price target of $60.00. The homebuilder, currently valued at $1.09 billion, has seen its stock decline significantly, now trading near its 52-week low of $45.35.
The upgrade comes despite acknowledgment of near-term headwinds for the homebuilder, with the research firm suggesting the current valuation represents a low point for the shares.
Texas Capital Securities noted that LGI Homes is currently trading at 0.53x price-to-tangible book value, which it considers attractive despite softer demand conditions in the housing market.
The $60 price target represents 10.5x the firm’s estimated 2026 earnings per share and 0.67x tangible book value per share for the company.
LGI Homes is scheduled to announce its third-quarter 2025 financial results on November 4, before the market opens.
In other recent news, LGI Homes reported its second-quarter 2025 earnings, revealing a revenue of $483.5 million, which fell short of the market’s forecast of $504.68 million. The company’s earnings per share (EPS) also missed expectations, coming in at $1.36 compared to the anticipated $1.39. Following this earnings report, Citizens JMP lowered its price target for LGI Homes from $140 to $75, citing weak operating margins and reduced contributions from other income sources. Despite these challenges, Citizens JMP analyst Aaron Hecht maintained a Market Outperform rating for the company.
Hecht later raised the price target to $85, following investor meetings that provided greater insights into LGI Homes’ business strategies, including competitive positioning and inventory optimization. These meetings highlighted adjustments in the sales force and the strategic positioning of community locations. These developments reflect the company’s ongoing efforts to navigate the current market conditions. Investors are closely watching these strategic moves and analyst evaluations for potential impacts on LGI Homes’ future performance.
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