BofA Downgrades Taylor Morrison Home Corporation (TMHC) to Neutral, Flags EPS and Delivery Risks Despite Valuation Appeal

Core Viewpoint - Taylor Morrison Home Corporation (NYSE:TMHC) is recognized as one of the best affordable housing stocks, but recent downgrades and EPS estimates suggest potential challenges ahead [1][3]. Group 1: Company Performance and Strategy - In its 2025 third-quarter earnings call, Taylor Morrison reported solid results and introduced an AI-powered digital assistant aimed at improving the homebuying experience through data-driven guidance [3]. - The company currently owns or controls 84,564 homebuilding lots and plans to open over 100 new communities in the upcoming year, indicating ongoing portfolio expansion [3]. - Founded in July 2007 and headquartered in Scottsdale, Arizona, Taylor Morrison is one of the largest homebuilders in the U.S., focusing on single-family homes and master-planned communities [4]. Group 2: Market Position and Analyst Insights - Taylor Morrison has a forward P/E ratio of 9.97, ranking 4th among the best affordable housing stocks to buy [1]. - BofA downgraded Taylor Morrison from Buy to Neutral, raising the price target to $70 from $68, while lowering 2026 EPS estimates by 6%, now approximately 18% below consensus [1]. - Despite its attractive valuation, BofA highlighted downside risks related to potential lower deliveries compared to peers [1].