Taylor Morrison On A Roll: Q1 Sales And Margins Impress Analysts, Price Targets Raised

On Wednesday, Taylor Morrison Home Corp TMHC reported better-than-expected Q1 2023 results. The company posted an EPS of $1.74, beating the consensus of $1.35. The company's Q1 sales reached $1.66 billion, above the analyst's expectations of $1.50 billion.
Following the release of results, these analysts changed their price targets on TMHC, mostly on strong margins and orders in Q1 2023.
RBC Capital Markets raised the price target to $42 from $33 and maintained the Sector Perform rating. Analyst Mike Dahl raised the EPS estimate to $6.40 (from $4.91) for 2023 and $5.54 (from $3.46) for 2024.
Dahl raised the 2023 order growth estimate to +8% y/y (from -6%) on expected positive acceleration in Q2 (+14% y/y).
Credit Suisse increased the price target on the stock to $47 from $41 and reiterated an Outperform rating. Analyst Dan Oppenheim raised EPS estimate to $7.00 (from $5.90) for 2023 and $6.05 (from $4.45) for 2024.
Analysts believe TMHC's strong balance sheet positions it well for exploring business expansion opportunities and enabling share repurchases.
Barclays also boosted the price target on TMHC to $45 from $40 and maintained the Equal Weight rating.
Price Action: TMHC shares are trading higher by 7.23% at $41.88 on the last check Thursday.

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