UPDATE: Gilford Securities Initiates Coverage on Meritage Homes Corporation with Buy Rating, $50 PT

In a report published Wednesday, Gilford Securities initiated coverage on Meritage Homes Corporation (NYSE: MTH) with a Buy rating and $50.00 price target.

Gilford Securities noted, “We are initiating on homebuilder Meritage (MTH) with a Buy rating in conjunction with our positive outlook for the US homebuilding market 2013-2015. Meritage is a top-10 homebuilder in the United States building a variety of home offerings including first-time, move-up, luxury and active adult. The Company is an industry leader in innovation and energy efficiency and has a quality-centric lot strategy. Our price target of $50 is predicated on a mix of a premium multiple of 2.6x forward adjusted book value of $19.50 and 9x $5.50 mid-cycle earnings.”

Meritage Homes Corporation closed on Tuesday at $41.39.

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