UPDATE: FBN Securities Downgrades M/I Homes
According to a research report published this morning, FBN Securities has downgraded M/I Homes (NYSE: MHO) from Outperform to Sector Perform.
FBN Securities said in the report, "MHO has risen 105.6% since our upgrade to Outperform on August 9th, 2011. We view the shares as fully valued trading at 14.4x our 2013 Adjusted EPS estimate of $1.15. In addition, MHO trades at a 13% premium to its Adjusted Book Value of $14.62/share (using 75% value for Tax Assets off Balance Sheet) versus a significant discount for a majority of the last 9 months. MHO was our last rated Homebuilder with an Outperform rating. Since besting the average 13 builders under our coverage by roughly 29% YTD, MHO has fallen back to rank near higher rated competitors Ryland (RYL, $23.10, Sector Perform) and D.R. Horton (DHI, $17.24, Sector Perform) in our Homebuilder Model. Although we are lowering MHO to Sector Perform, shares remain appealing on the long side of pair trades within the sector in our opinion."
M/I Homes is currently trading at $15.88.
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