Hovnanian Enterprises (HOV) Stock Forecast & Price Target

Hovnanian Enterprises Inc has demonstrated a positive financial trajectory, with an increase in pretax joint venture income estimates raised to $10 million, indicating improved operational performance. 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 regions, reflecting strong market demand and pricing power. Furthermore, order comparisons show a notable upward trend, improving from a year-over-year decline of 4% in May to a growth of 7% in July, highlighting a resurgence in consumer interest and potential revenue growth.

Hovnanian Enterprises is anticipated to experience a sequential decline in book value from FY25 to FY26, primarily due to an increase in the share count in FY26 compared to FY25. Additionally, the company's gross margin performance for F3Q25 was disappointing and is projected to worsen in F4Q25, highlighting challenges in maintaining profitability. The competitive pressures on gross margins have been significantly more adverse than previously expected, further contributing to a negative outlook for the company's financial health.