FBR Capital maintained an Outperform rating on WCI Communities (NYSE: WCIC), and cut the price target to $23.00 (from $28.00), following the company's 4Q earnings report. WCI reported headline EPS of $0.37, which was above consensus expectations of $0.36. FBR believes that the pillars for long-term earnings growth remain in place through volume growth, tower sales, and a strong macro backdrop for the Florida housing market.

Analyst Patrick Kealey commented, "We reiterate our Outperform rating but lower our price target to $23 from $28 following the release of WCI's 4Q15 results. WCI posted another solid result in 4Q15, and we believe the pillars for long-term earnings growth remain in place through volume growth, tower sales, and a strong macro backdrop for the Florida housing market. However, we are reducing our expectations for FY16 given more moderate expectations for SG&A leverage as the company lays the groundwork for future growth. That said, we believe WCI's unique footprint and leverage to the cash buyer, combined with current valuation, lead to a compelling investment opportunity."

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Shares of WCI Communities closed at $17.48 yesterday.