Meritage Homes Target Cut to $76; Q4 Communities Up 15%, $179M Returned
Keefe Bruyette analyst Jade Rahmani cut Meritage Homes’ price target to $76 from $78 while keeping a Market Perform rating, citing industry headwinds in the homebuilding environment. Meritage delivered a record 336 communities at quarter-end in Q4 2025, up 15% year-over-year, and returned $179 million to shareholders via buybacks and dividends.
1. Analyst Rating and Price Target
Keefe Bruyette analyst Jade Rahmani lowered Meritage Homes’ price target to $76 from $78 and maintained a Market Perform rating, pointing to continued pressures from elevated mortgage rates and a cautious buyer environment.
2. Q4 Community Expansion
In Q4 2025, Meritage Homes achieved a record 336 active communities, representing a 15% increase year-over-year, and opened 35 new communities during the quarter to broaden its geographic footprint.
3. Shareholder Returns and 2026 Outlook
Meritage returned approximately $179 million to shareholders through stock buybacks and dividends in the fourth quarter. Management forecasts a further 5%–10% increase in community count in 2026 to position the company for a market recovery.