Keefe Bruyette Stays Market Perform on Meritage Homes Corporation (MTH), Citing Near-Term Pressures

Company Overview - Meritage Homes Corporation (NYSE:MTH) is a real estate development company based in Scottsdale, Arizona, specializing in the construction of single-family detached homes across the United States. The company was founded in 1985 and is currently pursuing measured growth amid a cautious housing market [4]. Financial Performance - In its Q4 2025 earnings call, Meritage Homes reported a 15% year-over-year increase in ending community count, reaching a record 336 communities. The company opened 35 new communities in the fourth quarter and over 160 for the full year, indicating a strategic focus on expanding geographic reach and product availability [3]. - Management anticipates a further 5%–10% increase in community count in 2026, positioning the platform to capture demand as market conditions recover [3]. - Meritage Homes returned approximately $179 million to shareholders in the fourth quarter through a combination of buybacks and dividends, underscoring a commitment to shareholder value [3]. Analyst Insights - Keefe Bruyette analyst Jade Rahmani lowered the firm's price target on Meritage Homes to $76 from $78 while maintaining a Market Perform rating, citing the challenging homebuilding environment and near-term industry headwinds [1].