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A sold sign stands outside a new home in the D.R. Horton Cambridge at Southbury development in Oswego, Illinois.
Investors should buy D.R. Horton shares because its entry-level housing business will thrive in the coming years, according to Credit Suisse, which initiated coverage on the homebuilder with an outperform rating.
“DR Horton is among the best positioned builders within our coverage. Over the past five years, it has effectively leveraged its operating acumen within the entry-level segment of the market,” analyst Susan Maklari wrote in a note to clients Thursday. “With four brands that span price points and demographics, we look for continued outperformance as the housing cycle continues driving further upside potential.”