UBS Maintains a 'Neutral' on Hovnanian Enterprises (HOV); Raising PT to Reflect Gradual Recovery
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Price: $134.05 -1.7%
Rating Summary:
1 Buy, 4 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 6
Rating Summary:
1 Buy, 4 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 6
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UBS maintains a 'Neutral' on Hovnanian Enterprises (NYSE: HOV) price target raised from $1.50 to $3.00.
UBS analyst says, "Our recent checks suggest that the selling season is off to a good start, as sales and traffic have accelerated YOY, albeit off a low base. This performance is largely in line with our expectation for a gradual recovery, as the macro backdrop is generating better demand. That said, the negative impact from the absence of pro-cyclical underwriting, combined with the continued overhang from foreclosures, is limiting the pace of improvement."
"In our prior calculation, we weighted the probability of a restructuring vs. the capital structure persisting at 60/40. Given our outlook for a gradual recovery, combined with the recent run in the HB stocks, we now shift this to 30/70 to arrive at our new $3.00 PT. Our rating is unchanged, as we believe that the current valuation already incorporates this more optimistic view."
For an analyst ratings summary and ratings history on Hovnanian Enterprises click here. For more ratings news on Hovnanian Enterprises click here.
Shares of Hovnanian Enterprises closed at $2.76 yesterday.
UBS analyst says, "Our recent checks suggest that the selling season is off to a good start, as sales and traffic have accelerated YOY, albeit off a low base. This performance is largely in line with our expectation for a gradual recovery, as the macro backdrop is generating better demand. That said, the negative impact from the absence of pro-cyclical underwriting, combined with the continued overhang from foreclosures, is limiting the pace of improvement."
"In our prior calculation, we weighted the probability of a restructuring vs. the capital structure persisting at 60/40. Given our outlook for a gradual recovery, combined with the recent run in the HB stocks, we now shift this to 30/70 to arrive at our new $3.00 PT. Our rating is unchanged, as we believe that the current valuation already incorporates this more optimistic view."
For an analyst ratings summary and ratings history on Hovnanian Enterprises click here. For more ratings news on Hovnanian Enterprises click here.
Shares of Hovnanian Enterprises closed at $2.76 yesterday.
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