Taylor Morrison Gets Price Target Raised to $72, Cuts EPS Forecast 10%
BofA raised Taylor Morrison's price target to $72 from $70 but trimmed its 2026 EPS forecast by 10% while maintaining a Neutral rating due to cautious margin outlook. Taylor Morrison posted Q4 adjusted EPS of $1.91 on $1.96B revenue, and guided Q1 2026 for 2,200 closings at a 20% gross margin with 11,000 closings expected in 2026.
1. Price Target Increase and EPS Revision
BofA lifted the price target for Taylor Morrison to $72 from $70 but reduced its 2026 EPS forecast by 10%, citing concerns over future margin pressures while retaining a Neutral rating on the stock.
2. Q4 2025 Financial Outperformance
Taylor Morrison delivered adjusted EPS of $1.91, beating the $1.73 consensus estimate, and generated revenue of $1.96B versus $1.95B expected. The builder reported an 8% decline in home closings year-over-year but achieved a 2% rise in average selling price and a 21.8% gross margin on home sales.
3. 2026 Delivery and Margin Guidance
The company expects 2,200 home closings at a 20% gross margin in Q1 2026 and projects 11,000 total home closings for the full year, down from 12,997 deliveries in 2025 but reflecting continued focus on margin preservation.