Goldman Raises D.R. Horton Price Target to $190 After 11% Order Growth
D.R. Horton reported Q2 EPS of $2.24 versus $2.17 expected, posted 11% net sales orders growth, maintained $6.0 billion liquidity and a 21.7% debt-to-capital ratio. Goldman Sachs raised its price target to $190 from $162.20 despite revenue of $7.56 billion missing estimates and a 16% cancellation rate.
1. Q2 Earnings and Orders
D.R. Horton posted Q2 EPS of $2.24, beating the $2.17 consensus estimate, while net sales orders rose 11%. Total revenue reached $7.56 billion, slightly below the $7.60 billion forecast, and the company recorded a 16% cancellation rate on home orders.
2. Financial Position
The homebuilder maintained $6.0 billion in liquidity and a 21.7% debt-to-total capital ratio, underscoring strong balance sheet health. These metrics reflect robust financial flexibility amid market uncertainty.
3. Analyst Price Target Raise
Goldman Sachs raised its price target to $190 from $162.20, signaling confidence in D.R. Horton’s growth prospects. The new target represents significant potential upside based on current valuation and earnings momentum.