Overview
BofA Securities has increased its price target for NVR Inc. (NYSE:NVR) to $8,600 from $8,400 while reaffirming a Buy rating on the stock. The move follows NVR’s fourth-quarter 2025 financial report, which delivered results ahead of both BofA’s and consensus expectations on several key metrics.
Quarterly results and analyst response
NVR reported earnings per share of $121.54 for the quarter, outpacing BofA’s forecast of $114.38 and the consensus estimate of $107.13. Homebuilding revenue for the period was $2.64 billion, a 5% decline from the same quarter a year earlier, but nonetheless 7% higher than BofA had anticipated. The company also posted gross margin and SG&A expense outcomes that were better than the firm had modeled.
BofA responded to the quarter by nudging up its 2026 EPS projections for NVR by 1%, citing a higher absorption rate as the key factor behind the revision. The firm’s newly stated price target is calibrated to 20 times expected 2026 earnings. In its assessment, BofA singled out NVR among homebuilders for the potential to expand return-on-equity and suggested there is upside to consensus 2026 estimates.
Independent initiation from BTIG
Separately, BTIG has initiated coverage on NVR with a Buy rating, assigning a price target of $9,022.00. BTIG highlighted NVR’s strategic emphasis on location and cost efficiencies driven by its production facility network. The research firm also noted the company’s 100% finished lot option land bank, crediting these elements with delivering leading returns on equity and shareholder returns over time. BTIG framed these factors as supporting confidence in NVR’s operational capabilities and in the company’s prospects for future cash deployment.
Valuation context
According to InvestingPro data cited by analysts, the range of price targets on NVR spans from $7,910 to $9,022. The stock is reported to be trading slightly below its Fair Value, reflecting proximity to consensus valuation while leaving room for analyst-driven upside if 2026 earnings materialize as expected.
Takeaway
Analysts from BofA and BTIG are aligning behind NVR following a quarter that beat on EPS and key operating metrics. BofA’s modest upward revision to 2026 estimates and its 20-times earnings-based target, along with BTIG’s favorable initiation, frame the current view of NVR as a homebuilder with potential for improved returns on equity, provided execution on absorption and cost efficiencies continues to hold.