Another Positive for Homebuilder Bulls, Goldman Lifts Targets Across the Board (MDC) (KBH) (PHM) (TOL)
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Price: $62.98 --0%
Rating Summary:
4 Buy, 13 Hold, 3 Sell
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
4 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Analysts Goldman Sachs said there is more reasons to love homebuilders in a report to clients today. The firm noted that on September 11, the FHFA announced a plan to improve its representation and warranty approach, which they said "is a fundamental shift in improving mortgage availability." According to the note, "Starting in January 2013, banks participating in programs like HARP will be eligible for rep & warranty relief after 12 months of on-time mortgage payments."
This latest items is just another bullet point in their growing list of "Housing's Long List of Positives," and give them confidence in our 2013 forecast of 1mn starts. In light of the news, Goldman is raising their price targets on homebuilders by 10 percent.
On the Fed's plan to buy $40 billion per month in mortgage-backed securities, Goldman said lower mortgage rates should nominally help the housing market.
The firm's favorite names in the space are Conviction Buy List-rated M.D.C. Holdings (NYSE: MDC) and Buy-rated KB Home (NYSE: KBH), PulteGroup (NYSE: PHM) and Toll Brothers (NYSE: TOL).
Price Target Changes:
DR Horton (NYSE: DHI) (Neutral) from $23 to $24
Hovnanian (NYSE: HOV) (Neutral) from $3.50 to $4.52
KB Home (NYSE: KBH) (Buy) from $15 to $17
Lennar (NYSE: LEN) (Neutral) from $38 to $40
M.D.C. Holdings (NYSE: MDC) (CL Buy) from $50 to $53
Meritage Homes (NYSE: MTH) (Neutral) from $46 to $49
NVR (NYSE: NVR) (Sell) maintain at $950
PulteGroup (NYSE: PHM) (Buy) from $16 to $19
Ryland Group (NYSE: RYL) (Neutral) from $34 to $36
Toll Brothers (NYSE: TOL) (Buy) from $46 to $49
Goldman also initiated coverage on Beazer Homes (NYSE: BZH) today with a Neutral and $4.25 price target.
This latest items is just another bullet point in their growing list of "Housing's Long List of Positives," and give them confidence in our 2013 forecast of 1mn starts. In light of the news, Goldman is raising their price targets on homebuilders by 10 percent.
On the Fed's plan to buy $40 billion per month in mortgage-backed securities, Goldman said lower mortgage rates should nominally help the housing market.
The firm's favorite names in the space are Conviction Buy List-rated M.D.C. Holdings (NYSE: MDC) and Buy-rated KB Home (NYSE: KBH), PulteGroup (NYSE: PHM) and Toll Brothers (NYSE: TOL).
Price Target Changes:
DR Horton (NYSE: DHI) (Neutral) from $23 to $24
Hovnanian (NYSE: HOV) (Neutral) from $3.50 to $4.52
KB Home (NYSE: KBH) (Buy) from $15 to $17
Lennar (NYSE: LEN) (Neutral) from $38 to $40
M.D.C. Holdings (NYSE: MDC) (CL Buy) from $50 to $53
Meritage Homes (NYSE: MTH) (Neutral) from $46 to $49
NVR (NYSE: NVR) (Sell) maintain at $950
PulteGroup (NYSE: PHM) (Buy) from $16 to $19
Ryland Group (NYSE: RYL) (Neutral) from $34 to $36
Toll Brothers (NYSE: TOL) (Buy) from $46 to $49
Goldman also initiated coverage on Beazer Homes (NYSE: BZH) today with a Neutral and $4.25 price target.
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