UPDATE: Compass Point Upgrades DR Horton to Neutral on Updated Forecasts
Compass Point raised its rating on DR Horton (NYSE: DHI) from Sell to Neutral and raised its price target to $18.50.
Compass Point commented, "After a full model update we are raising estimates and, coupled with the stock's relative underperformance in the post-QE3 trade, we now feel DHI should perform in line with the rest of the space. Our price target increase reflects our increased 2013 EPS estimate to $0.93 from $0.87 as well as a consistent 5% assumed ROI. We still see downside in the shares to $18 but the stock is off 12% since the Fed announced QE3 in early September and has been the second worst performer in the homebuilding sector over that time frame."
DR Horton closed at $19.58 on Wednesday.
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