Ticonderoga Maintains a 'Neutral' on NVR Inc. (NVR); Lacking a Catalyst, Rating Remains Intact
Tweet
Share
E-mailGet Alerts NVR Hot Sheet
Price: $6,307.93 -1.05%
Rating Summary:
8 Buy, 10 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 10 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Ticonderoga maintains a 'Neutral' on NVR Inc. (NYSE: NVR).
Ticonderoga analyst says, "Given the company’s premium valuation in comparison to its peers, we found little in the company’s Q1 earnings release to alter our opinion with respect to the equity. In our opinion, a catalyst needed drive the shares appreciably higher over the near-term is absent. As the company’s community count is expected to remain flat, useful Order growth will prove a challenge. Similarly, this quarter’s Order decline combined with a sequential drop in Order ASPs will make overhead absorption more difficult. Moreover, contrary to what the company believes, we remain of the opinion that the budget rhetoric in Washington is negatively impacting consumer confidence in the region. Therefore, with the Mid-Atlantic accounting for roughly 50% of NVR’s business, we look for this controversy to be a comparative headwind on the company’s Orders for some time. Likewise, given poor weather in February, we are disappointed that NVR did not experience an above customary monthly Order progression during the quarter. With the majority of builders reporting later this week combined with New Home Sales on Monday, we will get color on if such a trend is regional or company-specific or endemic to the industry."
For more ratings news on NVR Inc. click here and for the rating history of NVR Inc. click here.
Shares of NVR Inc. closed at $725.00 yesterday.
Ticonderoga analyst says, "Given the company’s premium valuation in comparison to its peers, we found little in the company’s Q1 earnings release to alter our opinion with respect to the equity. In our opinion, a catalyst needed drive the shares appreciably higher over the near-term is absent. As the company’s community count is expected to remain flat, useful Order growth will prove a challenge. Similarly, this quarter’s Order decline combined with a sequential drop in Order ASPs will make overhead absorption more difficult. Moreover, contrary to what the company believes, we remain of the opinion that the budget rhetoric in Washington is negatively impacting consumer confidence in the region. Therefore, with the Mid-Atlantic accounting for roughly 50% of NVR’s business, we look for this controversy to be a comparative headwind on the company’s Orders for some time. Likewise, given poor weather in February, we are disappointed that NVR did not experience an above customary monthly Order progression during the quarter. With the majority of builders reporting later this week combined with New Home Sales on Monday, we will get color on if such a trend is regional or company-specific or endemic to the industry."
For more ratings news on NVR Inc. click here and for the rating history of NVR Inc. click here.
Shares of NVR Inc. closed at $725.00 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c
- Diana Shipping withdraws bid to acquire Genco Shipping
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
