BUZZ-BofA expresses caution for homebuilders' 2025 forecast

(Updates) ** BofA Global Research lowers price objective on major U.S. homebuilders D.R. Horton DHI.N , Lennar Corp LEN.N and PulteGroup PHM.N ** BofA cuts price objective on DHI's stock to $170 from $190, PHM to $135 from $150 and LEN to $165 from $190 ** Shares of both, DHI and LEN, down 1.1%, while PHM slips 0.7% ** "We lower our estimates and price objectives on homebuilders to reflect more cautious order and gross margin outlook" - BofA ** Brokerage says its more conservative forecast for homebuilders' 2025 gross margins is due to an increase in incentives on entry-level speculative homes and ongoing inflation in land/lot prices ** BofA reiterates "buy" ratings on DHI and PHM, citing expected price growth and robust shareholder returns compared to other homebuilders; maintains "neutral" rating on LEN ** Including session's move, the S&P Composite 1500 Homebuilding Sub Index .SPCOMHOME up over 7%, YTD (Reporting by Rupali Chaudhary in Bengaluru) ((mailto:[email protected]))