Raymond James downgrades homebuilder stocks as 7% mortgage rates 'cripple' housing affordability

Citigroup Inc

Change company Symbol lookup

Select an option...

C Citigroup Inc

AMTI Applied Molecular Transport Inc.

XELB Xcel Brands Inc

WULF Terawulf Inc

MCHP Microchip Technology Inc

BAC Bank of America Corp

GFX^ Golden Falcon Acquisition Corp

PBR Petroleo Brasileiro SA Petrobras

ZM Zoom Video Communications Inc

PERF Perfect Corp

Financials : Banks | Large Cap Value

Company profile

Citigroup Inc. is a diversified financial services holding company. The Company provides a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services and wealth management. Its operating business segments include Institutional Clients Group (ICG), Personal Banking and Wealth Management (PBWM), Legacy Franchises and Corporate/Other. ICG segment consists of services, markets, and banking that provides corporate, institutional, and public sector clients with a range of wholesale banking products and services. The Company’s PBWM segment consists of United States (US) personal banking and global wealth management, providing traditional banking services and credit cards to retail and small business customers in the U.S. Its Legacy Franchises segment includes Asia consumer banking, Mexico consumer banking/Mexico small business and middle-market banking (SBMM) and legacy holdings assets.

Raymond James downgrades homebuilder stocks as 7% mortgage rates 'cripple' housing affordability

8:05 am ET October 21, 2022 (MarketWatch) Print

Raymond James analysts Buck Horne and Tousley Hyde on Friday downgraded shares of KB Home , Lennar Corp. , M.D.C. Holdings Inc. , PulteGroup Inc. and Toll Brothers Inc. to market perform and cut their rating on D.R. Horton Inc. to outperform from strong buy. Pulte Group, KB Home and M.D.C. saw their ratings drop by two notches from strong buy. Lennar and Toll Brothers were previously rated outperform, one step lower than strong buy. Analysts noted that housing affordability has been crippled by mortgage rates spiking to 7% and more and that the industry is bracing for a housing recession. Shares of KB Home fell 1.4% in premarket trades, Lennar dropped 1.9%, M.D.C. subtracted 1.4%, Pulte fell 1.9% and Toll Brothers slid 1.8%.

-Steve Gelsi

(END) Dow Jones Newswires

October 21, 2022 08:05 ET (12:05 GMT)