John Khoury of Long Pond Capital on Monday said he sees upside potential for home builder D.R. Horton of 60%. Kicking off the 23rd annual Sohn Investment Conference, a popular ideas confab, Khoury said D.R. Horton is transforming into a pure-play manufacturer of entry-level homes, which should ensure a higher premium for its shares, he says, noting that the company has moved away from its land-related business. Higher cash flow from home sales has allowed for debt reduction, Khoury makes the case. Looking ahead, Khoury estimates that future demand will be high because existing-home inventory is low, while there are almost 2 million more people in their mid to late 20s than early to mid-30s, looking to buy. Shares of the home builder were up 0.8% in recent trade, but have been down 15.1% so far in 2016, according to FactSet data. By comparison, the S&P 500 index is flat for 2018, while the Dow Jones Industrial Average is down 1.1% in the first four months of the year.