UBS lowers NVR stock price target to $8,150 from $7,900, maintains Neutral rating

Published 24/07/2025, 11:24
UBS lowers NVR stock price target to $8,150 from $7,900, maintains Neutral rating

Investing.com - UBS lowered the price target on NVR Inc . (NYSE:NVR) to $8,150 from $7,900 while maintaining a Neutral rating following the homebuilder’s second-quarter 2025 financial results. The company, currently valued at $22.78 billion, has maintained strong financial health with an InvestingPro Overall Score of "GREAT."

The investment bank reduced its earnings per share estimates for NVR to $445 from $460 for 2025, to $480 from $497 for 2026, and to $532 from $556 for 2027. These adjustments reflect softer-than-previously modeled volume and margins. This aligns with InvestingPro data showing two analysts revising their earnings estimates downward for the upcoming period.

Despite the reduced earnings outlook, UBS increased its price target based on a higher price-to-earnings multiple of approximately 17 times 2026 estimated earnings, up from the previous 16 times multiple. The firm indicated that the second quarter likely represented the final cut to earnings estimates, potentially creating an opportunity for stock re-rating.

UBS noted improving market sentiment toward homebuilders and growing expectations that 2026 could represent an improved year for housing activity. The firm continues to model flat-to-slightly higher year-over-year gross margins in 2026 for the homebuilding sector.

The Neutral rating remains in place as UBS believes NVR’s exposure to more mature housing markets and headwinds in the Southeast region may limit near-term growth relative to peers.

In other recent news, NVR, Inc. has announced a substantial stock repurchase plan, authorizing the buyback of up to $750 million of its outstanding common stock. This move is part of a long-standing initiative aimed at enhancing shareholder value, with the purchases to be made periodically under market conditions. Additionally, NVR held its Annual Meeting of Shareholders, where all director nominees were elected for one-year terms with significant majority votes, signaling strong shareholder support for the current leadership. Notably, Paul C. Saville received 2,424,404 votes in favor, reflecting confidence in the board’s strategy.

Moreover, NVR has appointed Michael J. DeVito to its Board of Directors as an independent director. DeVito brings extensive experience from his previous roles, including serving as CEO of Freddie Mac (OTC:FMCC) and holding senior positions at Wells Fargo (NYSE:WFC). These developments highlight NVR’s ongoing efforts to strengthen its governance and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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