LGI Homes stock price target maintained at $93 by Citizens

Citizens maintained a Market Outperform rating and a $93.00 price target on LGI Homes stock (NASDAQ:LGIH). Currently, the stock is trading at $46.45, which is below the analyst's target. However, InvestingPro data suggests that the shares may be slightly overvalued based on Fair Value analysis. LGI Homes carries a market cap of $1.08 billion and has a P/E ratio of 16.45.

The company has lowered its third-quarter 2026 earnings per share (EPS) estimate from $1.06 to $0.70 and its fourth-quarter 2026 EPS estimate from $1.38 to $0.94. These revised estimates are based on a 19.0% gross margin for the second half of 2026, down from the previous 20.5%. Citizens anticipates that rising mortgage rates and a highly competitive environment might necessitate additional price cuts and more expensive mortgage rate buydowns.

Furthermore, Citizens has lowered its full-year 2026 closings estimate to 4,900 homes from 5,200 homes, which is slightly below the midpoint of LGI's guidance. As of now, the company has completed 3,400 closings in fiscal 2026, and Citizens expects the low end of their 4,600 to 5,400 closings guidance to be achievable if fourth-quarter 2026 closings remain flat with the third-quarter 1,189 homes.

Citizens believes that LGI's guidance for a higher number of communities by the end of fiscal year 2026 could act as a catalyst for higher closings in the fourth quarter compared to the third quarter. For more detailed analysis, investors can access InvestingPro's comprehensive Pro Research Report on LGIH, one of the 1,400+ US equities covered with expert insights and actionable intelligence.

LGI Homes specializes in building entry-level and move-up homes across various markets in the United States. In recent developments, LGI Homes reported second-quarter earnings and revenue that exceeded Wall Street expectations. The homebuilder reported adjusted earnings of $1.16 per share, surpassing the analyst estimate of $0.83, and revenue of $516.05 million, which was higher than the projected $455.93 million.

Consequently, the company raised its full-year margin and price outlook, reflecting positively on its financial performance and future prospects.