Keefe Bruyette Stays Market Perform on Meritage Homes Corporation (MTH), Citing Near-Term Pressures

We recently published an article titled 10 Best Affordable Housing Stocks to Buy. 

As of February 3, Keefe Bruyette analyst Jade Rahmani lowered the firm’s price target on Meritage Homes Corporation (NYSE:MTH) to $76 from $78 while maintaining a Market Perform rating, citing the challenging homebuilding environment and near-term industry headwinds.

During its Q4 2025 earnings call, Meritage Homes Corporation (NYSE:MTH) reported a 15% year-over-year increase in ending community count, reaching a record 336 communities. The company opened 35 new communities in the fourth quarter and over 160 for the full year, reflecting a strategic focus on expanding geographic reach and product availability. Management anticipates a further 5%–10% increase in community count in 2026, positioning the platform to capture demand as market conditions recover. Moreover, Meritage Homes returned approximately $179 million to shareholders in the fourth quarter through a combination of buybacks and dividends, underscoring a commitment to shareholder value.

Meritage Homes Corporation (NYSE:MTH) is a Scottsdale, Arizona-based real estate development company that constructs single-family detached homes across the United States. Founded in 1985, the company continues to pursue measured growth amid a cautious housing market.

While we acknowledge the potential of MTH 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.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 9 High Growth Canadian Stocks to Buy

Disclosure: None.