UPDATE: Stifel Nicolaus Upgrades D. R. Horton to Hold on Valuation, Housing Upside
Stifel Nicolaus raised its rating on D. R. Horton (NYSE: DHI) from Sell to Hold.
Stifel Nicolaus said, "We view the homebuilding sector as richly valued overall, but also see housing as in the early stages of a secular recovery and offering strong sustained tailwinds to broader economic recovery for the next three years. We expect that to support homebuilder valuations remaining robust. … As for DHI, its strong 2012 return (+56.9% vs. the S&P 500's +13.4%) was less than half that of the +123% homebuilding average. In our view the sizable valuation premium that it held a year ago for its top quality management, market share leading position, and robust balance sheet has more or less vanished."
D. R. Horton closed at $20.39 on Wednesday.
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