UPDATE: JP Morgan Upgrades Beazer Homes to Overweight; Liquidity Overhang Gone

JP Morgan raised its rating on Beazer Homes

from Underweight to Overweight as the company has put a turnaround plan in motion. JP Morgan noted, "In concert with our industry sector update report published today, we are upgrading BZH to Overweight from Underweight. Following its capital transactions last month, liquidity concerns have been adequately addressed, in our view, and as such we do not expect an additional equity raise at least over the next 12 months. Moreover, we note that its turnaround plan has begun to yield solid progress in terms of sales pace, while positively, the company is now turning its focus to gross margin expansion. Lastly, valuation is attractive, in our view, as BZH currently trades at 0.65x P/B (ex-adj. FAS 109)." Beazer Homes closed at $2.67 on Wednesday.