1402 ET - D.R. Horton's woes aren't going away, say Raymond James analysts Buck Horne and Tousley Hyde, who downgrade the stock to underperform. Margins will likely continue to struggle with the company seeing higher finished lot costs, labor constraints and cautious buyers that require significant incentives. The entry-level builder will also see increased competition due to a buildup of re-sale inventory in the Sun Belt. Net absorption has fallen to the lowest levels in almost a decade and the company may not even be able to hit its target for a modest decline in deliveries in fiscal 2027, the analysts say. Shares fall 4.5% to $146.09.
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