Bank of America Merrill Lynch downgraded homebuilder stocks Toll Brothers, PulteGroup and NVR and lowered its homebuilding estimates for 2018 and 2019.
“This morning BofA Merrill Lynch’s US economics team lowered its 2018-2019 housing starts and new home sales forecasts and thus we slightly temper our macro housing assumptions,” analyst John Lovallo said in a note Thursday.
Lovallo downgraded Toll Brothers, PulteGroup and NVR shares to neutral from buy. He also lowered his price target on Toll Brothers to $38 a share from $47. The analyst trimmed his target on PulteGroup shares to $28 from $32 and NVR to $2,850 from $3,060.