UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on The Ryland Group
In a report published Monday, Citigroup reiterated its Neutral rating on The Ryland Group (NYSE: RYL), and raised its price target from $22.00 to $42.00.
Citigroup noted, “Channel checks continue to indicate that good lots at reasonable prices are becoming scarcer, and input costs are recovering upwardly on improved supply chain capacity utilization and a short supply of skilled labor. Therefore, we look forward to management's commentary on these potential issues and expected (related) trends in RYL's gross margins, backlog conversion rates, and rising active community count and absorptions. For 2013, we project gross margin (incl. interest) to expand 130bp YoY to 20.7%, backlog conversions of ~56% per quarter, and active communities up 10% YoY at 2013-end.”
The Ryland Group closed on Friday at $40.96.
Latest Ratings for RYL
|Feb 2015||Bank of America||Initiates Coverage on||Buy|
|Feb 2015||Compass Point||Downgrades||Buy||Neutral|
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