Hovnanian Enterprises (HOV) Stock Forecast & Price Target

Hovnanian Enterprises has demonstrated a positive financial trajectory, with an upward revision of its pretax joint venture income estimate to $10 million, reflecting increased confidence in its profitability. The company successfully raised home prices in approximately 20% of its communities in the Mid-Atlantic and Northeast markets during the third fiscal quarter of 2025, indicating strong demand and pricing power in these regions. Additionally, order comparisons showed an improvement over the same period, transitioning from a year-over-year decrease of 4% in May to increases of 1% in June and 7% in July, suggesting a strengthening market position and positive reception from buyers.

Hovnanian Enterprises Inc is facing a negative outlook primarily due to an anticipated sequential decline in book value from FY25 to FY26, driven by an increase in share count. Additionally, the company's gross margins for F3Q25 were significantly lower than expected, with the forecast for F4Q25 indicating ongoing challenges in maintaining profitability. Competitive pressures on gross margins have intensified more than previously anticipated, further exacerbating the company's financial difficulties.