UPDATE: JP Morgan Upgrades Hovnanian Enterprises to Neutral on on EPS Outlook

JP Morgan upgraded Hovnanian Enterprises Inc HOV from Underweight to Neutral and maintained its $7.00 price target. JP Morgan commented, "While we still believe the company's capital structure requires additional equity, and note that its adjusted P/B is highly expensive, at the same time, HOV's valuation appears more reasonable against our 2016 Earnings Power even when assuming a 50% increase in share count. Additionally, we estimate that HOV will achieve modestly positive EPS in FY13 of $0.13, which we view as an important fundamental hurdle for the company to clear." Hovnanian Enterprises closed at $6.49 on Thursday.