BofA Downgrades Taylor Morrison Home Corporation (TMHC) to Neutral, Flags EPS and Delivery Risks Despite Valuation Appeal
We recently published an article titled 10 Best Affordable Housing Stocks to Buy.
With a forward P/E ratio of 9.97, Taylor Morrison Home Corporation falls 4th on the list of best affordable housing stocks to buy. On January 16, BofA downgraded Taylor Morrison Home Corporation (NYSE:TMHC) to Neutral from Buy, raising the firm’s price target to $70 from $68. The firm lowered its 2026 EPS estimates by 6%, with the updated EPS now approximately 18% below consensus. While the stock remains attractive on valuation, BofA flagged downside risk relative to consensus EPS due to potential lower deliveries compared with peers.
During its 2025 third-quarter earnings call, the company reported solid results and highlighted strategic initiatives, including the launch of an AI-powered digital assistant to enhance the homebuying experience through dynamic, data-driven guidance. Taylor Morrison Home Corporation (NYSE:TMHC) currently owns or controls 84,564 homebuilding lots and anticipates opening over 100 new communities in the coming year, reflecting continued portfolio expansion.
Headquartered in Scottsdale, Arizona, it is one of the largest homebuilders in the United States. Founded in July 2007, Taylor Morrison Home Corporation (NYSE:TMHC) focuses on developing single-family homes and master-planned communities, combining scale with technology-driven customer engagement to support long-term growth.
While we acknowledge the potential of TMHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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