UPDATE: Sterne Agee Initiates Beazer Homes USA at Buy on Turnaround Continues

Sterne Agee initiated coverage on Beazer Homes USA

with a Buy rating and a $21.00 price target. Sterne Agee analyst Jay McCanless wrote, "We believe clients with a multi-year focus and a high risk tolerance should buy BZH and look for opportunities to own the shares at lower levels as opportunity permits. […] We Expect Beazer To Report An Operating Profit by F3Q13. Operating profits are not as coveted as net profits, but for a company that has not reported an operating profit since F4Q06 (FY ends in September), we view this as a milestone. We believe overhead cuts and an improving market are the reasons for the milestone, and the next task for management is consistent pretax profitability which we expect in F2H14." Beazer Homes USA closed at $16.32 on Wednesday.