UPDATE: J.P. Morgan Downgrades MDC Holdings; Lowers PT

Loading...
Loading...
According to a research report published earlier today, J.P. Morgan has downgraded MDC Holdings
MDC
from Neutral to Underweight, and has lowered PT from $22 to $20. In the report, J.P. Morgan commented, “ We are downgrading MDC Holdings – which we note has had the second best YTD performance in our universe, up 42% vs. our sector average of 26% (S&P: +11%) – to Underweight from Neutral, driven by our concerns regarding the company's above average exposure to a new FHA rule, which negatively impacts the first-time homebuyer segment. Specifically, we believe the FHA's new rule disqualifying borrowers with $1,000 or more in outstanding collections disproportionately impacts the more credit-challenged first-time homebuyer, which represents 50% of MDC's sales vs. our universe average of 42%, and in turn could negatively impact 15-20% of MDC's overall business, which is at the higher end of our universe range of 10-20%.” MDC Holdings closed yesterday at $25.01.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorDowngradesPrice TargetAnalyst RatingsJ.P. Morgan
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...