Canaccord Genuity on Hovnanian (HOV), KB Home (KBH), Lennar (LEN), PulteGroup (PHM): Slow Go
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Price: $148.71 --0%
Rating Summary:
1 Buy, 4 Hold, 5 Sell
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Today's Overall Ratings:
Up: 10 | Down: 8 | New: 5
Rating Summary:
1 Buy, 4 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 8 | New: 5
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Canaccord Genuity on Hovnanian Enterprises (NYSE: HOV), KB Home (NYSE: KBH), Lennar (NYSE: LEN), PulteGroup (NYSE: PHM): Slow go.
Canaccord analyst said, "Shares of U.S. homebuilders fell as the Commerce Department’s most recent report indicated housing starts had their largest decline in 27 years last month, while building permits dropped to a low for the cycle. Single family housing permits decreased 9.3% to 382,000 homes annualized; well below the market estimate, and Credit Suisse’s estimate of 429,000 homes annualized. The brokerage notes that while housing starts are both volatile and less precise estimates of the housing market, permits are generally a better reflection of demand. Total permits dropped 8.2% to 517,000 units analyzed, below both the market and Credit Suisse’s estimate. The brokerage sees the weak levels of permits as a continued highlight of the anemic new home demand at the beginning of the spring season. Single family starts were down 11.8%, with significant declines seen in three of the four regions measured, suggesting the weakness could not be solely be attributed to poor weather. This is disappointing as it comes at a time of year when construction should be ramping up for the spring season. Credit Suisse believes this reflects the continued hesitance from builders as demand remains challenging, especially given the price differential between new and existing homes. There is currently a large backlog of unsold homes, and continued uncertainty in the employment market has made buyers hesitant to make large financial commitments."
Canaccord analyst said, "Shares of U.S. homebuilders fell as the Commerce Department’s most recent report indicated housing starts had their largest decline in 27 years last month, while building permits dropped to a low for the cycle. Single family housing permits decreased 9.3% to 382,000 homes annualized; well below the market estimate, and Credit Suisse’s estimate of 429,000 homes annualized. The brokerage notes that while housing starts are both volatile and less precise estimates of the housing market, permits are generally a better reflection of demand. Total permits dropped 8.2% to 517,000 units analyzed, below both the market and Credit Suisse’s estimate. The brokerage sees the weak levels of permits as a continued highlight of the anemic new home demand at the beginning of the spring season. Single family starts were down 11.8%, with significant declines seen in three of the four regions measured, suggesting the weakness could not be solely be attributed to poor weather. This is disappointing as it comes at a time of year when construction should be ramping up for the spring season. Credit Suisse believes this reflects the continued hesitance from builders as demand remains challenging, especially given the price differential between new and existing homes. There is currently a large backlog of unsold homes, and continued uncertainty in the employment market has made buyers hesitant to make large financial commitments."
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