FBR Capital reiterated an Outperform rating on Taylor Morrison Home (NYSE: TMHC), and raised the price target to $16.00 (from $15.00), following the company's 1Q earnings report. TMHC reported earnings per share of $0.21, which fell just shy of consensus estimates of $0.23. However, closings and gross margins both exceeded expectations. The company reiterated guidance, implying strong earnings improvement through the year.

Analyst Patrick Kealey commented, "We reiterate our Outperform rating and adjust our price target to $16 from $15 following the release of Taylor Morrison Home's 1Q16 results. The company exceeded our expectations for revenue and closing growth this quarter, and we think it remains well positioned to see earnings growth in a steadily improving housing market. We believe that TMHC will continue to realize benefits from its prior acquisitions and remains a compelling investment opportunity at today's valuation levels."

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Shares of Taylor Morrison Home closed at $13.79 yesterday.