Goldman Sachs Upgrades M.D.C. Holdings (MDC) to Buy, Sees 21% Upside

Goldman Sachs upgraded M.D.C. Holdings (NYSE: MDC) from Neutral to Buy with a price target of $30, suggesting 21% upside.

The firm expects the company to cut SG&A by 10%-15% in 2012 just as orders and sales are beginning to grow. Based on this, the firm expects the 30% valuation discount to peers should shrink.

Goldman also said the net cash position provides a higher level of safety and they also like the 4.1% dividend yield.

For an analyst ratings summary and ratings history on M.D.C. Holdings click here. For more ratings news on M.D.C. Holdings click here.

Shares of M.D.C. Holdings closed at $24.78 yesterday, with a 52 week range of $14.79-$32.30.

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