UPDATE - UBS Downgraded D.R. Horton (DHI) to Neutral; Recent Rally Leaves Shares Fairly Valued:
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Price: $147.33 --0%
Rating Summary:
13 Buy, 23 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
Rating Summary:
13 Buy, 23 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
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UPDATE - UBS downgraded D.R. Horton (NYSE: DHI) from Buy to Neutral.
UBS analyst said, "Since 8/31, DHI has risen +34%, ahead of the S&P 500 +7%. In turn, it now trades at 1.5x tangible BV (based on a discounted value for tax benefits). As outlined in our 10 Predictions for 2012 report (out today), we still expect a gradual recovery. In turn, we do not believe the earnings power needed to justify the current valuation can be achieved."
"Recent macro macro data increasingly suggests a more robust housing recovery. We believe this conclusion is overly optimistic, especially for owner occupied demand. We note that: 1) procyclical underwriting is unlikely to materialize given regulatory and macro uncertainty & 2) the transition of foreclosures from owner to renter occupied remains gradual. Further, we expect government policy to focus on economic stimulus (like mass refis), as opposed to rising homeownership rates."
To see more ratings on DHI, Click Here
UBS analyst said, "Since 8/31, DHI has risen +34%, ahead of the S&P 500 +7%. In turn, it now trades at 1.5x tangible BV (based on a discounted value for tax benefits). As outlined in our 10 Predictions for 2012 report (out today), we still expect a gradual recovery. In turn, we do not believe the earnings power needed to justify the current valuation can be achieved."
"Recent macro macro data increasingly suggests a more robust housing recovery. We believe this conclusion is overly optimistic, especially for owner occupied demand. We note that: 1) procyclical underwriting is unlikely to materialize given regulatory and macro uncertainty & 2) the transition of foreclosures from owner to renter occupied remains gradual. Further, we expect government policy to focus on economic stimulus (like mass refis), as opposed to rising homeownership rates."
To see more ratings on DHI, Click Here
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