Hovnanian Enterprises (HOV) Stock Forecast & Price Target

Hovnanian Enterprises Inc. has demonstrated a significant upward adjustment in its pretax joint venture income estimates, increasing from $7 million to $10 million, indicating a positive trajectory in its financial performance. The company has successfully raised prices in approximately 20% of its communities during the third fiscal quarter of 2025, particularly in the Mid-Atlantic and Northeast markets, reflecting strong demand and pricing power. Additionally, order comparisons have shown a positive trend with improvements from a 4% year-over-year decline in May to increases of 1% in June and 7% in July, suggesting a recovery and strengthening of market conditions for Hovnanian Enterprises.

Hovnanian Enterprises is projected to experience a sequential decline in book value from FY25 to FY26, attributed to an anticipated increase in share count. The company has reported gross margins for F3Q25 that fell short of expectations, with a similarly disappointing outlook for F4Q25. Additionally, competitive pressures have adversely impacted gross margins more significantly than previously expected, indicating challenges in maintaining profitability.