Meritage Homes Shares Drop After Truist Downgrade
Meritage Homes (NYSE:MTH) shares fell by 2.3% in premarket trading following a downgrade from Truist Securities, which reduced its rating to Hold from Buy and lowered the price target to $72 from $80. The move reflects ongoing challenges for homebuilders due to high mortgage rates and rising construction costs that are squeezing profitability across the sector. Meritage reported a 38% year-on-year decline in net income during its most recent quarter, highlighting earnings pressure within the company. Truist had initially assigned Meritage a Buy rating with an $90 price target in March 2026 but revised it downward as market conditions worsened. The broader US equity markets showed gains on Wednesday, contrasting with Meritage's underperformance. Analysts remain divided, with five Buy and four Hold ratings currently issued for the stock.
Tickers: $MTH