UPDATE: Topeka Capital Markets Downgrades Ryland Group to Hold on Valuation

Topeka Capital Markets reduced its rating on Ryland Group

from Buy to Hold with a $36 price target. Topeka Capital Markets noted, "We estimate RYL's community opening plan could produce triple-digit EPS growth in 2013as it grows inside the current footprint and expands to new markets. We believe demand is rising for RYL's homes due to declines in competing supply and improving economies in its key MSAs. However, at current levels, we believe the shares are fairly valued, and we are lowering our rating to Hold from Buy." Ryland Group closed at $37.56 on Wednesday.