Hovnanian Enterprises (HOV) Stock Forecast & Price Target

Hovnanian Enterprises Inc has demonstrated a positive financial outlook, as evidenced by the raised pretax joint venture income estimate from $7 million to $10 million. The company successfully implemented price increases in approximately 20% of its communities during the third quarter of fiscal year 2025, particularly in the Mid-Atlantic and Northeast markets, indicating strong demand and pricing power. Furthermore, Hovnanian's order comparisons showed improvement through July 2025, with a year-over-year decline of only 4% in May improving to a 7% increase by July, reflecting growing sales momentum.

Hovnanian Enterprises is projected to experience a sequential decline in book value from FY25 to FY26, primarily attributed to an increased share count estimate in FY26 compared to FY25. Additionally, the company's gross margins for F3Q25 and the outlook for F4Q25 have not met expectations, highlighting significant competitive pressures affecting profitability. These factors collectively contribute to a negative outlook regarding Hovnanian Enterprises's financial performance.