UBS reiterated a Neutral rating on Beazer Homes (NYSE: BZH), and raised the price target to $10.00 (from $8.00), following the company's 3Q earnings results. Reflecting F4Q guidance, UBS raised 2016 EPS estimates to $0.90 from $0.75. 2017 estimates go to $1.10 from $1.00.

Analyst Susan Maklari commented, "Following Beazer's F3Q results, we believe the company continues to progress towards its long term goals of driving top-line and margin expansion along with deleveraging. We highlight the following: 1) a modest increase in the community count along with the benefit of an easier comp (F4Q15 unit orders were flat YOY) will contribute to unit order growth of 10+% YOY in F4Q16, 2) operational improvements—including management of its spec sales—and its three-pronged strategy around product and mortgage financing will help drive greater profitability including gross margins back to 21+%, and 3) improving demand along with a gradual rise in optioned lots will allow for effective cash management as it looks to balance growth with its targeted debt paydown of $150mn in F2016 and $250+mn through F2018."

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Shares of Beazer Homes closed at $9.52 yesterday.