BUZZ-Barclays cuts US homebuilders PTs on subdued investor view for Q4

Barclays cuts PTs for homebuilders DR Horton DHI.N to $150 from $170, for Pultegroup PHM.N to $125 from $140, for Toll Brothers TOL.N to $115 from $135

Brokerage says investors may look for "further confirmation of choppiness" for new home construction during Q4 in upcoming earnings season

"The momentum around rate cuts driving demand for new homes higher this year has all but evaporated, inventory levels have increased and we expect margin pressure to mount," Barclays says

Brokerage expects builders to update margin and deliveries forecasts to reflect more tepid 2025 outlook as persistent incentives continue to pressure margins

In 2024, shares of DHI fell 8%, PHM climbed 5.5% and TOL rose 22.5%

(Reporting by Aatreyee Dasgupta)

((Aatreyee.Dasgupta@thomsonreuters.com))