Bank of America Cuts Homebuilders, ‘Bracing for Inevitable’ Virus Hit
- Recreational vehicles likely to be in the toughest spot: BofA
- KB Home upgraded as it’s seen as showing some resiliency
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Bank of America cut its ratings and price targets on several homebuilders and building products companies as the firm is bracing for the “inevitable” coronavirus impact on the U.S. housing market.
The firm on Thursday downgraded Lennar Corp. and NVR Inc. to neutral from buy and cut Toll Brothers Inc. and Foundation Building Materials Inc. to underperform from neutral and buy, respectively. KB Home was raised to buy from neutral as BofA sees “substantial first-time buyer offerings” providing “some degree of resiliency” compared to the overall market.