Hovnanian Enterprises (HOV) Stock Forecast & Price Target

Hovnanian Enterprises Inc has demonstrated a positive financial trajectory, evidenced by an increase in pretax joint venture income estimates from $7 million to $10 million. Additionally, the company successfully raised prices in approximately 20% of its communities during the third fiscal quarter of 2025, particularly in the Mid-Atlantic and Northeast markets, indicating strong demand and pricing power. Moreover, order comparisons showed improvement, with a notable turnaround from a 4% year-over-year decline in May to a 7% increase in July, reflecting a strengthening market position.

Hovnanian Enterprises Inc is anticipated to experience a sequential decline in book value from FY25 to FY26, attributed to an increase in the share count in FY26 compared to FY25. Additionally, the company's gross margins for F3Q25 have fallen short of expectations, with a similarly pessimistic outlook for F4Q25, indicating deteriorating profitability. Furthermore, heightened competitive pressures have adversely impacted gross margins more significantly than previously anticipated, contributing to an overall negative financial outlook.