Investing.com -- RBC Capital Markets maintained a cautious outlook on homebuilders for 2025 given the affordability challenges amid high interest rates but noted selective opportunities in building products.
RBC expects housing starts and repair-and-remodel activity to remain flat this year, with macroeconomic factors like tariffs, taxes, and immigration policies adding volatility.
The brokerage prefers less macro-dependent sectors, favouring companies like Owens Corning (NYSE:OC), Beacon Roofing Supply (NASDAQ:BECN), and Azek Corp, which are all rated "outperform."
RBC upgraded homebuilders KB Home (NYSE:KBH) and Lennar Corp (NYSE:LEN) to "sector perform" but maintained "underperform" ratings on D.R. Horton, Whirlpool (NYSE:WHR), and Installed Building Products (NYSE:IBP).
On KBH rating the brokerage said “our upgrade ahead of next week’s results is valuation-based and not a call on the quarter, as we expect results/guide to come in weak on both orders and margins, following LEN’s earlier miss and pricing weakness”
"Valuations still aren't attractive given the frothy starting point,” analyst said, but added that the sentiment has turned more balanced improving risk/reward
Related Articles
RBC cautious on Homebuilders, prefers select building products
Edison denies LA wildfire involvement as insurers ask it to preserve evidence
US property and casualty insurers slide as Los Angeles wildfire losses mount
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。