UPDATE: JP Morgan Upgrades Meritage Homes to Overweight on Valuation, Superior Growth
JP Morgan upgraded Meritage Homes (NYSE: MTH) from Neutral to Overweight and raises the price target from $38.50 to $49.50.
JP Morgan said, "Given our outlook for above average order growth in 2013 and an attractive valuation against our 2016 Earnings Power, we believe MTH is currently at a compelling entry point relative to its peers. ... Importantly, we believe our 27% order growth estimate for 2013 versus our universe average estimate of 19% is not only a positive relative catalyst on its own, but is additionally meaningful given some investor concerns regarding builders with below average supplies of lots, and hence, our outlook should positively address what some view as a disadvantage or liability."
Meritage Homes closed at $71.70 on Thursday.
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