UPDATE: Sterne Agee Initiates The Ryland Group at Buy on Growth Outlook

Sterne Agee initiated coverage on The Ryland Group

with a Buy rating and a $52.00 price target. Sterne Agee analyst Jay McCanless noted, "We expect continuing EPS of $2.50 for FY13 and GAAP EPS of $2.59 in FY14, and our PT is a 20x multiple on our FY14E EPS which is at the high end of our 15x to 20x P/E valuation range for our coverage. Continuing FY13E EPS excludes the benefit we expect from the reversal of RYL's deferred tax asset (DTA), and FY14 assumes RYL returns to a 38% tax provision after the DTA reversal." The Ryland Group closed at $38.38 on Wednesday.