D.R.霍顿、史密斯·道格拉斯·霍姆斯（Horton Douglas Homes）因严峻的住房建设前景而与美国银行（BofA）进行了激烈的谈判

Bank of America Securities downgraded homebuilders D.R. Horton (NYSE:DHI) to Neutral from Buy and Smith Douglas Homes (NYSE:SDHC) to Underperform from Neutral, as analyst Rafe Jadrosich expects this year to feature higher cost inflation and a more competitive selling environment.

"We expect the challenging environment for homebuilders to persist through 1H25. Investors tend to focus on demand, but we are more concerned about higher cost inflation (rising land prices) and a more competitive selling environment (increasing inventory and higher mortgage rates)," Jadrosich wrote in a note.

Such a backdrop results in a "more conservative gross margin and [return on equity] outlook into 2025," he added.

In Monday premarket trading, D.R. Horton (NYSE:DHI) shares edged down 0.9%, and Smith Douglas Homes (NYSE:SDHC) retreated 5.4%.

On the other side of the fence, BofA remained bullish on Toll Brothers (TOL) and (NVR), naming the two stocks "our top homebuilder picks" amid attractive valuations.

Seeking Alpha's Quant system, meanwhile, gives the highest rating among homebuilder stocks to Champion Homes (SKY), followed by Meritage Homes (MTH) and Legacy Housing (LEGH).