Citizens JMP Raises Price Target on LGI Homes (LGIH) to $85

Citizens JMP analyst Aaron Hecht reiterated a Market Outperform rating on LGI Homes (NASDAQ: LGIH) and raised the price target to $85.00.

The analyst commented, "We maintain our Market Outperform rating and raise our price target to $85 (90% of FTM book value) from our prior $75 (80% of FTM book value) on LGI Homes (LGIH) following recent investor meetings. Last week, we hosted half a dozen investor meetings with management in Chicago. Our experience left us with greater insight into multiple aspects of LGIH's business, including competitive positioning of community locations, adjustments to the sales force, optimization of inventory, reducing leverage, and eventually buying back stock. These actions are primarily in response to the company experiencing a slower sales pace, which was also the highlight of 2Q25 earnings. However, we now have more clarity on how it could play out, with the first step a reduction in standing spec inventory, which will bring leverage back toward 40% by early 2026. On a positive note, recent comments by Fed Chairman Powell on potential rate reductions has raised optimism across the space. Bottom line, management has a plan to deal with lower demand while remaining profitable and managing leverage, which we believe is enough to support our Market Outperform rating."

For an analyst ratings summary and ratings history on LGI Homes click here. For more ratings news on LGI Homes click here.

Shares of LGI Homes closed at $63.41 yesterday.

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